Common front of Australia and the US against China for the control of rare earths

The fragile relationship between the United States and China moves to a key niche for the future of both powers and their allies: rare earths. Australia enters this dynamic, which has just officially become a key player on the geopolitical board. Donald Trump and Australian Prime Minister Anthony Albanese held their first bilateral meeting late on Monday and signed a 4.7 billion euro agreement at the White House to achieve “mastery of critical minerals and energy.” In this way, they seek to establish themselves as the counterweight to Beijing, which in 2024 exported 91% of these compounds to the world. Canberra and Washington, aware that much of the power in the new world order involves controlling these minerals, have made it clear that they have no time to waste.

The extraction and processing of these vital natural resources for weapons, technology or renewables also serves as a bargaining chip in negotiations between enemies and even allies. With this pact, The US seeks to guarantee the supply of rare earths through a reliable partnerwhile the enormous private Australian mining sector will receive a great economic boost – already reflected in the Stock Market -. With this brotherhood, Australia will also try to cushion US tariff attacks. All of this with the common goal of being self-sufficient and not depending on China, especially after its recent threat to cut off the supply of critical elements. It is the umpteenth chapter of the trade war and the United States has responded with the warning of applying 100% extra tariffs to Beijing.

Immediate plan

The plan of Australia and the United States is immediate, looking ahead to six months, and each nation will allocate 860 million euros to projects that are already underway. In addition, the US will invest in infrastructure so that minerals extracted on Australian soil are also processed in the oceanic country. That has been the historic Achilles heel that has led it to export its production to the Asian giant for decades and the main reason for the change in strategy of the Labor Executive after tying up its second term in May. One of Albanese’s first measures after his victory at the polls was an investment of hundreds of millions to generate his own reserves of these elements that also serve to supply his allies. The US was in the crosshairs.

“We have been working on this for quite some time”Trump noted. “Within a year we will have so many critical minerals and rare earths that we won’t know what to do with them. They will be worth about two dollars,” he continued. For his part, Albanese highlighted that it was “a really significant day” for the relationship between the two nations to go “to the next level.” And he warned: “We have only just begun.”

This complicates Canberra’s juggling act in its search for balance between Beijing, its largest trading partner, and Washington, its traditional ally. A day before the meeting between the two leaders, the third incident in 18 months occurred between Australian and Chinese fighter jets over the South China Sea. Acting Prime Minister Richard Marles denounced that a People’s Liberation Army military plane launched flares “very close” to an Australian surveillance plane. In response, Chinese air force spokesman Li Jianjian stated yesterday that the Australian aircraft had “illegally entered” its airspace. The events occurred on islands whose sovereignty is disputed by China, Vietnam and Taiwan. Australia states that they happened over international waters.

Trump to Australian ambassador: “I don’t like you either”

Albanese looks at the North Pacific without complexes, despite having marked differences with the American during the electoral campaign prior to the May elections. In fact, during the press conference at the White House, a journalist asked Trump about the criticism that Kevin Rudd, Australian ambassador to the United States, former prime minister and one of Albanese’s right-hand men, received at that time on social media. “I don’t know anything about that. Maybe you would like to apologize.”replied the American president to the nervous laughter of his counterpart. He then turned his gaze to Rudd. “I don’t like you either, and I probably never will,” he added before giving way to another question. The diplomat apparently later apologized for those comments.

This bad drink did not tarnish a meeting that in Australia is perceived as historic. There was no shortage of praise between both leaders. Trump called Albanese a “great” leaderstressed that “there has never been anyone better” for the United States and that both countries “have fought in wars together without there being any doubt” about their alliance. The Australian added that “there are no closer friends and allies than the US and Australia.”

The cherry on top of this idyll came with Trump’s commitment to the defense pact, Aukus, focused on strengthening the development and manufacturing capabilities of nuclear-powered submarines in the two nations and the United Kingdom. The American noted that they have “many” and are building more Virginia Class submarines that Australia so desires. “We have everything ready with Anthony [Albanese]”He noted. Australia rubs its hands with the rare earths agreement, the Aukus commitment and Trump’s potential visit in its pocket.