President Donald Trump and Australian Prime Minister Anthony Albanese signed a deal Monday that will pump billions of dollars into major mineral projects.
The United States and Australia will jointly contribute $3 billion to the project over the next six months. The government says the total pipeline of projects is worth $8.5 billion.
As part of the agreement, the Pentagon will also invest in a gallium smelter in Western Australia that can produce 100 tonnes per year. According to the U.S. Geological Survey, the United States currently imports about 21 tons of gallium, or 100% of its domestic consumption.
The move comes as China restricts exports of certain minerals, including rare earth elements, which are essential for the production of electronics and electric motors. For example, gallium is used in microwave circuits, blue and violet LEDs, and can be used to create powerful lasers.
Alongside a major mineral deal, Australia has agreed to buy $1.2 billion worth of autonomous underwater vehicles (AUVs) from defense startup Anduril. The White House did not say whether the purchase agreement was new or part of a previously announced $1.12 billion program for Anduril to deliver Ghost Shark AUVs to the Royal Australian Navy. The deal was announced in September.
