In first meeting, Australian PM Albanese to discuss rare earths, Aukus deal with Trump

In his first meeting with US President Donald Trump, Australian Prime Minister Anthony Albanese will on Monday propose a partnership to capitalise on Australia’s rare earth reserves and seek a firmer commitment to the Aukus pact aimed at bolstering security in the Indo-Pacific.

Albanese is also expected to raise issues of trade and regional security during his discussions with Trump.

The meeting comes just days after China tightened its export controls. Among the new restrictions, Beijing has banned the export of rare earths with military applications and prohibited the transfer of any equipment or information that could assist other countries in establishing their own rare earths production.
Rare earths are essential to virtually every modern product — from household items like mobile phones to cars, fighter jets, and missiles.

Albanese makes rare earths Australia’s Trump card

China holds the world’s largest rare earth reserves and accounts for around 90 per cent of global production of rare earth elements and magnets. However, Australia also possesses significant reserves — the fifth-largest globally. And it has recently stepped up investment in mining projects to boost output.

By positioning Australia as a reliable supplier, Albanese aims not only to gain leverage in trade and defence talks but also to remind Trump of the strategic value of close allies in countering China’s influence, noted The New York Times’ Victoria Kim in a recent article.

The timing may work in Australia’s favour as China’s export curbs have exposed vulnerabilities of the United States. With the offer of a rare earths partnership, Albanese could also challenge Trump’s long-standing claim that many allies are freeloaders.

“The timing is exquisite,” Ian Satchwell, a mining industry veteran and adjunct professor at the Sustainable Minerals Institute at the University of Queensland, told The Times. “The critical minerals thing is another string to the alliance bow.”

Albanese to also focus on Aukus deal

Albanese is also expected to seek clarity on the Aukus agreement involving Australia, the United Kingdom, and the United States.

Earlier this year, the Trump administration placed Aukus under review. At a time when Trump has trashed traditional allies and drawn closer to Russia, there are concerns that the review could be a pretext to abandon the pact altogether.

Under Aukus, Australia is set to acquire conventionally-armed, nuclear-powered submarines (SSNs). These submarines will be based on the UK’s next-generation SSN design, incorporating cutting-edge US submarine technologies, and will be jointly built and deployed by Australia and the UK, according to a White House fact sheet released at the time of the deal’s announcement.