In a significant move to bolster critical minerals supplies and reduce dependency on China, the United States and Australia have sealed a groundbreaking $3 billion deal. This partnership aims to invest in critical minerals projects, with a total project pipeline valued at $8.5 billion.
One key aspect of the deal is the U.S. Department of Defense’s investment in a gallium refinery in Western Australia, set to produce 100 tons of gallium annually. This move is crucial as the U.S. currently imports 21 tons of gallium, representing its entire domestic consumption. Gallium is a vital component in various tech applications like microwave circuits and LEDs.
The agreement comes at a time when China has imposed restrictions on the export of essential minerals, such as rare earth elements, crucial for electronics and electric motors production. By collaborating on critical minerals projects, the U.S. and Australia aim to secure a stable supply chain and reduce reliance on Chinese sources.
Additionally, in a separate agreement, Australia will purchase $1.2 billion worth of autonomous underwater vehicles from defense startup Anduril. This move highlights the broader scope of technological partnerships between the two nations beyond critical minerals.
Source: TechCrunch