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On 20 October 2025, Australian Prime Minister Anthony Albanese and US President Donald J. Trump signed the United States–Australia Framework for Securing of Supply in the Mining and Processing of Critical Minerals and Rare Earths (Framework) at the White House in Washington, D.C.
The Framework establishes a bilateral policy and programmatic action plan to secure and diversify supply chains for critical minerals and rare earths, which are essential to defence and advanced technologies. It marks a significant expansion of the US-Australia alliance in the resources sector and aims to accelerate the development of priority projects in both countries - potentially unlocking a staggering US$8.5 billion pipeline of critical mineral projects.
In this article, we look at the key activities leading up to the announcement, core provisions of the Framework, and what this means for mining companies.
Context
- The US is seeking to reduce its reliance on critical minerals imports from China and other non-allied countries, following recent Chinese proposals to restrict exports of rare earths and other strategic materials.
- The US Energy Act of 2020 defines a "critical mineral" as a non-fuel mineral or mineral material essential to the economic or national security of the US and which has a supply chain vulnerable to disruption, meaning critical minerals are core for key US industries like defence and manufacturing. The US Geological Survey (USGS), which leads the US Government in developing its Critical Minerals List, is due to publish an updated 2025 List of Critical Minerals on or before 9 November 2025. See the draft list of 54 critical minerals here.
- Australia has an abundance of raw critical minerals, and a wealth of mining know-how to be able to bring projects into operation. The Albanese government has promoted Australia's critical minerals sector as a reliable and secure source for US supply chains, while the US Department of the Interior and National Energy Dominance Council have prioritised investment and regulatory streamlining for critical minerals projects.
- The announcement follows a period of increased bilateral engagement, including meetings between BHP, Rio Tinto, and senior US officials regarding major mining projects such as the Resolution Copper joint venture in Arizona.
Implications for Australian mining companies
The Framework represents a significant shift in the operating environment for Australian mining and processing companies, particularly those involved in rare earths and other critical minerals. Key implications include:
1. Substantial increase in investment and project bankability
The Framework commits both governments to mobilise at least US$1 billion each in financing within six months, with the US Export-Import Bank (EXIM) already announcing over $2.2 billion in letters of interest for Australian projects. This injection of capital - alongside mechanisms such as offtake agreements and potential price floors - directly addresses longstanding challenges around project bankability, high upfront capital requirements, and price volatility in the rare earths sector. For Australian companies, this support may unlock financing for new projects and expansions that have previously struggled to reach final investment decision.
2. Accelerated permitting and regulatory streamlining
The Framework includes commitments to accelerate, streamline, or deregulate permitting timelines and processes for critical minerals and rare earths projects. This is expected to reduce project lead times and regulatory uncertainty, enabling faster development and commercialisation of new mining and processing capacity.
3. Enhanced access to US markets and long-term demand growth
By establishing a secured bilateral supply chain and prioritising Australian projects for US government and private sector investment, the Framework provides Australian producers with improved access to the US market. This is particularly significant given the US' strategic focus on reducing reliance on Chinese supply and the anticipated long-term growth in demand for critical minerals in defence, energy, and advanced manufacturing sectors.
4. Increased geopolitical relevance and strategic partnerships
Australian mining companies are positioned to play a central role in the re-industrialisation of the US high-tech manufacturing base and the broader Western effort to ensure supply chain resilience. The Framework's trilateral approach (with Japan also involved in key projects) and explicit focus on allied cooperation further elevate the geopolitical importance of Australian critical minerals producers.
5. Ongoing scrutiny of foreign investment and asset sales
The Framework expressly calls out reviews and deterrence of critical minerals and rare earths assets sales on national security grounds. We can safely assume that sales of critical minerals assets will continue to be heavily scrutinised by Foreign Investment Review Board (FIRB), consistent with its current approach. Obtaining FIRB approval for divestments of critical minerals/rare earths projects to investors from certain jurisdictions (particularly to investors from countries with market dominance in rare earths/critical minerals), will be extremely challenging.
6. Broader project pipeline and named beneficiaries
Beyond the headline projects named to date (Alcoa-Sojitz Gallium Recovery Project and Arafura Nolans Project), EXIM's letters of interest span a range of Australian companies and minerals. This signals a broadening pipeline of supported projects and opportunities for a diverse range of mining and processing companies.
Key provisions of the Framework
| Secured supply chains | The US and Australia will intensify cooperation to accelerate the secure supply of critical minerals and rare earths, leveraging existing policy tools such as the US industrial stockpiling infrastructure and Australia's Critical Mineral Strategic Reserve. |
| Investment commitments | To complement the Framework, both governments will each provide at least US$1 billion in financing over the next six months, supporting a US$8.5 billion pipeline of priority projects in both countries. |
| Project selection and support | Projects will be jointly identified to address supply chain gaps, with support available through guarantees, loans, equity, offtake arrangements, insurance, and regulatory facilitation. |
| Permitting and regulatory streamlining | Measures will be taken to accelerate, streamline, or deregulate permitting timelines and processes for mining, separation, and processing activities. |
| Market and price mechanisms | The Framework includes commitments to protect domestic markets from non-market policies and unfair trade practices, including the adoption of standards-based trading systems and potential price floors. |
| Asset sales and national security | Both countries will strengthen authorities and diplomatic tools to review and deter critical minerals asset sales on national security grounds. |
| Recycling and scrap management | Investment in minerals recycling technology and coordinated management of critical minerals and rare earth scrap are included to support supply chain diversification. |
| Geological mapping and third-party engagement | The US and Australia will cooperate on geological mapping and work with third parties as appropriate to ensure supply chain security. |
| Rapid response group | A US-Australia Critical Minerals Supply Security Response Group will be established, led by the US Secretary of Energy and the Australian Minister for Resources, to identify priority minerals, supply vulnerabilities, and accelerate delivery of processed minerals. |
| Non-binding | The Framework is expressly non-binding and does not create legal rights or obligations under domestic or international law. |
Named priority projects
Two projects have been specifically identified and received financial commitments:
1. Alcoa-Sojitz Gallium Recovery Project (Wagerup, Western Australia):
- Australia will provide up to US$200 million in concessional equity finance, with a right of offtake for the Australian Government.
- The US Government will also make an equity investment with a right of offtake.
- The project is expected to supply up to 10% of global gallium, a key input for defence and semiconductor manufacturing.
- This is a trilateral project involving Japan, which has already provided 50% of project costs.
2. Arafura Nolans Project (Northern Territory, Australia):
- Australia will provide a US$100 million equity investment.
- Once operational, the project is expected to produce 5% of global rare earths, supporting energy security and defence applications.
Anticipated timing
- The Framework provides for at least US$1 billion in financing from each country within six months of signing (by April 2026).
- A Mining, Minerals and Metals Investment Ministerial will be convened within six months (by April 2026).
- The Framework anticipates new mining and processing capacity to be available in 2026.
Conclusion
The Framework represents a formal, high-level commitment by the US and Australia to secure and expand critical minerals supply chains, with immediate investment in named projects and a clear timeline for further action. Legal and industry stakeholders should monitor implementation and project selection processes as the Framework is operationalised over the coming months.
If you'd like to discuss how you might be affected by the above, please reach out to a member of our team.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
