Australia is set to reap massive economic benefits from a landmark rare earths agreement signed between Prime Minister Anthony Albanese and US President Donald Trump, described by industry leaders as a “game-changer” for the nation’s future.
The deal — formally known as the US–Australia Critical Minerals Framework — places rare earth elements and critical minerals at the heart of the Canberra–Washington alliance, aiming to counter China’s dominance in global supply chains.
China currently controls 61% of global rare earth mining and a staggering 92% of processing, according to the International Energy Agency.
Among the Australian beneficiaries is RZ Resources, one of seven firms to receive financial backing from the US Export–Import Bank. Executive Chairman David Fraser said the deal will “create a multibillion-dollar industry” and generate “tremendous jobs across many sectors.”
“This isn’t just about mining. It’s about building the next generation of Australian manufacturing, energy and technology,” Fraser told the Today show.
The funding will support RZ’s Copi Mine project in Brisbane, which aims to deliver 400,000 tonnes of critical minerals annually to global markets.
Prime Minister Anthony Albanese said the deal demonstrated that Australia’s relationship with the United States is “in really good shape.”
Rare earth elements are vital for modern life — found in smartphones, wind turbines, LED lights, and electric vehicles — and are also essential for defence industries, used in fighter jets, missiles, and military drones.
With this new partnership, Australia and the US hope to break China’s near-total monopoly on the global rare earths supply chain.
Fraser added that the agreement would strengthen Australia’s confidence in developing a home-grown sector:
“We need to stand on our own two feet — start processing more here and supply our trusted allies like the US, Japan, and India,” he said.
The deal marks a major strategic and economic milestone, positioning Australia as a key global player in the critical minerals revolution.
