Source: Global Times

According to a statement issued by the White House by the White House, the Australian government will invest $1 billion in the exploration and processing of key minerals in the next six months, according to the content of the agreement published by the two countries. Albany believes that the agreement will ¡°take Australian-American relations to a new height¡± and says Canberra will ¡°continue to seize every opportunity to further improve its relations.¡± The White House statement describes the agreement as a plan to ¡°critical minerals and energy dominance.¡± Another statement of the White House also mentions that Australia pledges new defense investments and purchases of U.S. equipment. Nevertheless, Trump said he is unlikely to provide tariff relief to Australia.

Provide financing in exchange for "ownership" and enjoy "offtake rights"

According to news released by the White House and the Australian Prime Minister's Office, the framework agreement signed by the two parties will help the two countries achieve resilience and security in critical minerals and rare earth supply chains (including mining, separation and processing) through the use of economic policy tools and coordinated investments. The two sides announced that they will take measures in the next six months, each investing at least US $1 billion to support the priority critical mineral projects of the two countries totaling US $8.5 billion. The two countries will also set up a "U.S.-Australia Critical Minerals Supply Security Response Team", led by the U.S. Secretary of Energy and the Australian Minister of Resources, responsible for identifying priority mineral types and weak links in supply.

On 20 local time, Australian Prime Minister Albany (left) and U.S. President Trump in the White House showcase the text of the key mineral framework agreement signed after Visual China

According to Reuters, the White House statement on the agreement added that the recoverable resource value of these projects is estimated to be $53 billion, but did not disclose details of specific mineral types and deposit locations. The White House news also mentioned that the two sides promised to formulate new or strengthen existing powers and diplomatic means to review and prevent the sale of critical minerals and rare earth resources from the perspective of national security.

The Australia Broadcasting Corporation (ABC) said the new Critical Minerals Framework Agreement amounts to "immediate" investments in a range of key mineral projects in almost all states and territories of Australia. In exchange for providing financing, the governments of Australia and the United States will obtain partial ownership of the facilities and enjoy "off-take rights", which effectively ensures that part of the output of these facilities will be supplied to the two countries.

Albanese said: "This [referring to the framework agreement] is not only about extracting resources and exporting them, but also ensuring that every link of the supply chain can get investment so that our partners can benefit from it ¡­ It's not only about mining, but also about processing." Trump said: "In about a year, we will have a lot of critical minerals and rare earths, so many that you don't even know what to do with them."

"The United States must continue to invest in long-term development"

In addition to the key mineral framework agreements, Albany also received Trump's support for the US-UK-Australian "Okuz" nuclear submarine agreement during the trip to the United States. Reuters said that although Trump has been eager to abolish the Biden period policy, months ago, his team had also launched a review of the "Okuz" agreement due to concerns about the ability of the United States to meet its own submarine needs, but he expressed his intention to support the agreement.

The Australian Financial Review believes that from the perspective of Albania, his first formal meeting with Trump was a huge success. Trump invited the heaviest officials under him to attend, including Vice President Wences, Secretary of State Rubio, etc. The presence of Defence Secretary Hergezes and Navy Secretary John Faren should also strengthen Australian confidence that Trump's support for "Okus" will reach the ears of the Pentagon officials responsible for reviewing the deal. Though the two come from different political factions and have differences on issues such as climate change and the establishment of a Palestinian state, they have found common ground in US-Australian economic relations and key mineral fields.

An Associated Press analysis said that if U.S. companies can obtain some of the rare earth resources already being produced in Australia mines, the U.S. -Australia key mineral agreement may have a direct impact on the U.S. rare earth supply. But pini althouse, founder of usa rare earth, warns that Australia cannot meet all of america's needs, so the us must continue to invest in long-term development, developing other mining and processing projects at home and in friendly countries. "Please remember that China is nearly 40 years ahead of us." "In terms of meeting the needs of our own supply chain, it will take at least a few decades to catch up with China," Althaus said.

Data map of China's export controls on related rare earth items

The Australian Special Broadcasting Service said Australian Green MPs were unhappy with the government's push for "Ocuse" and thought it should be "terminated" the deal, and if the prime minister was genuinely thinking for Australia, he should tell President Trump that the $300 billion nuclear submarine purchase was actually a waste.

"This is the best treatment currently available."

Many Western media believe that the United States and Australia reached a framework agreement on key minerals this time, which is intended to target China. However, Australian Treasury Secretary Jim Chalmers told Bloomberg on the 21st that "China's economy will continue to be an important source of our own economic growth.""We may engage with the United States as in the past, while continuing to stabilize and focus on developing very important relations with China."

China Foreign Ministry Spokesperson Guo Jiakun said on the 21st in response to questions related to the US-Australia Key Minerals Agreement that the formation of the global production and supply chain is the result of market and enterprise choices. Countries with key mineral resources should play an active role in ensuring the security and stability of industrial and supply chains and ensure normal economic and trade cooperation.

On the other hand, there are still problems in US-Australia relations. The BBC said that although Albanese not only received praise from Trump when he left the White House, but also signed an agreement, Australia is feeling some subtle tension, which can be said to be the first time in its history. For a long time, the United States has been regarded as Australia's closest partner and most reliable ally. However, under the current international order, Australia has become more cautious in examining this alliance. According to the report, the tariff policy of the United States disappointed Australia, and the announcement of the review of "Okus" in June this year caused panic in Canberra. All these events, coupled with Trump's capricious attitude towards other allies, have exacerbated Australia's distrust of the United States.

ABC said that on the 20th, in the face of Albanese, Trump deliberately avoided controversial topics in U.S. -Australia relations such as defense spending. On the tariff issue, he once again made it clear that he would not change the policy, but seemed to say something soothing: "Australia currently pays the lowest tariffs." The implication is that Australia can only accept this status quo, but you can rest assured that this is the best treatment at present.

Albanians and Trump shake hands