US and Australia strike US$8.5 billion rare-earth deal amid strategic competition

The governments of the United States and Australia signed an agreement on October 22 2025 to invest about US$8.5 billion in securing rare-earth-processing capacity in Australia. The deal intends to reduce reliance on China’s supply chains, boost defence-industry security and support supply-chain diversification amid growing global competition over critical minerals. Analysts view the pact as part of a larger strategic push to shore up technology-critical commodities and may underpin further investment flows into allied nations.