United States and Australia sign critical-minerals agreement as a way to counter China

President Donald Trump and Australian Prime Minister Anthony Albanese signed a critical minerals deal Monday at the White House, making good on U.S. interest in Australia's rich rare-earth resources as a potential counterpoint to China's new minerals export restrictions.

The two leaders described the agreement as an $8.5 billion deal between the allies. Trump said it had been negotiated over several months.

It follows Beijing's new requirement for foreign companies to get approval from the Chinese government to export magnets containing even trace amounts of rare earth materials that originated from China, or were produced with Chinese technology.

The U.S. Trade Representative said this gives China broad power over the global economy by controlling the tech supply chain, making Australia's mining economy a key alternative for critical minerals sought by the U.S.

Trade and defense are also up for discussion, as Trump hasn't indicated publicly whether he'll continue the AUKUS security pact with Australia, the U.S. and the United Kingdom that was signed during the Biden administration. The Pentagon is reviewing the agreement.