The U.S. and Australia signed a $3 billion agreement to fund critical minerals projects, crucial for reducing reliance on China. This deal aims to enhance domestic production of essential materials like gallium.

The U.S. and Australia have entered into a significant $3 billion agreement aimed at enhancing the production of critical minerals, which are essential for various technologies, including electronics and electric motors. Announced on October 20, 2025, the deal will see both countries invest in projects over the next six months, with a total project pipeline valued at $8.5 billion. A key component of this agreement is the U.S. Department of Defense's investment in a gallium refinery located in Western Australia, which is expected to produce 100 tons of gallium per year. Currently, the U.S. relies entirely on imports for its gallium needs, making this initiative crucial for national security and technological independence. The deal also includes Australia's purchase of $1.2 billion worth of autonomous underwater vehicles from defense startup Anduril, further strengthening defense ties between the two nations.