U.S. and Australia sign $3B critical minerals deal

The United States and Australia have signed a $3 billion agreement to jointly invest in critical minerals projects over the next six months, aiming to strengthen supply chains for essential materials. The total value of the project pipeline is estimated at $8.5 billion. A key component of the deal includes the U.S. Department of Defense funding a gallium refinery in Western Australia with a production capacity of 100 tons per year. This investment addresses U.S. reliance on gallium imports, which currently meet 100% of domestic consumption at about 21 tons annually. The move is partly a response to China's export restrictions on rare earth elements and other critical minerals used in electronics and electric motors. In addition to the minerals agreement, Australia has committed to purchasing $1.2 billion worth of autonomous underwater vehicles (AUVs) from the U.S. defense startup Anduril. It remains unclear whether this purchase is a new contract or part of a previously announced $1.12 billion program for delivering Ghost Shark