Critical minerals and rare earth elements have continued to be a major focus in geopolitics. Which is exactly why the United States and Australia have just formed their largest partnership ever.

What’s happening:

  • The United States of America and Australia have formed a new $8.5B USD partnership to significantly expand the supply chains of both critical minerals and rare earth elements

By the numbers:‍

  • The $8.5B USD is expected to come from government agencies in both the United States and Australia as well as select private institutions and investors
  • The United States and Australia have both committed to deploying $1B USD in government funding each over the next 6 months

Why it matters:‍

  • This is the single largest deal that Australia and the United States have ever partnered on to build out vertically integrated supply chains for both critical minerals and rare earth elements

Going deeper:‍

  • Both Australia and the United States have publicly stated their initial funding commitments will be focused on processing facilities and strategic direct equity investments into natural resource companies who are operating in the United States and Australia
  • The new deal between the United States and Australia comes just after China notably expanded their restrictions on rare earth elements to also include rare earth technology and processing equipment

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