President Donald Trump signed a deal with Australia on Monday that will grant the U.S. access to the nation’s rare earth minerals in exchange for Australia investing in America’s defense companies.
“In about a year from now, we’ll have so much critical minerals and rare earths that you won’t know what to do with them,” Trump said.
President Trump announces a new deal with Australia on critical and rare earth minerals:
“In about a year from now, we’ll have so much critical mineral and rare earths that you won’t know what to do with them—they’ll be worth about 2 dollars.” pic.twitter.com/7jqf0yvmsC
— Trump War Room (@TrumpWarRoom) October 20, 2025
The primary goal of the deal is to bypass China, which, according to CNN, “controls more than 90% of the global output of refined rare earths, which are used to power everything from iPhones to electric vehicles.”
The problem is that earlier this year, China imposed draconian export controls on its earth minerals, famously prompting President Trump to fire back with a threat of 100 percent tariffs on Chinese goods.
China specifically said it would begin requiring licenses for anyone wishing to export “any products containing over 0.1% of domestically-sourced rare earths, or manufactured using China’s extraction, refining, magnet-making, or recycling technology.”
Why is this even a problem, though? Because America has been highly dependent on China for rare earth compounds and metals for years.
“Between 2020 and 2023, the US was dependent on China for 70% of its imports of all rare earths compounds and metals, according to a report by the US Geological Survey,” CNN notes.
The fact China is stopping shipments of rare earth minerals proves Trump’s point
We are blindly reliant on China for our critical needs. If we don’t fix if, we are a permanent vassal state.
— Charlie Kirk (@charliekirk11) April 13, 2025
To this day, America is STILL dependent.
Case in point via CNN: “[I]n a note Monday, Goldman Sachs estimated that disruption to just 10% of production in industries dependent on these elements could wipe out $150 billion in US economic output.”
Some critics warn that the deal with Australia won’t be enough, even in the short term.
“I don’t think that the rare earth supply issues can be solved in the short term, period,” Australian National University economic geology professor John Mavrogenes said. “China is too far ahead of the world.”
“I’d say we’re a decade away [from building up the required production capacity], even if we really got serious. We’d have to make an industry from scratch. And that takes a lot of dedication and long-term planning, and a lot of effort,” he added.
Others say building up the required production capacity would be possible if regulations were simply loosened.
The U.S. has over $12 trillion in rare earth minerals, but we’re dependent on China due to outdated policies.
Now, China is threatening an embargo, which could cripple our tech and manufacturing sectors.
It’s time to #MineBabyMine!https://t.co/LQK6qsFyNi
— Stephen Moore (@StephenMoore) October 13, 2025
For the time being, however, the president appears to be looking outward for a solution.
“Trump earlier this year also talked about acquiring minerals in Greenland and Canada,” the New York Times notes. “The United States, in recent years, has also invested in a railway in Angola that will help the U.S. have access to critical minerals in central Africa.”
His administration is likewise confident about the new deal with Australia.
“Australia is really, really going to be helpful in the effort to take the global economy and make it less risky, less exposed to the kind of rare earth extortion that we’re seeing from the Chinese,” National Economic Council Director Kevin Hassett said.
Regarding China, Trump vowed on Monday to secure a deal with President Xi Jinping when he travels to Asia later this month and meets directly with his Chinese counterpart.
TRUMP: “WE’RE GOING TO END UP HAVING A FANTASTIC DEAL WITH CHINA”
“I think when we finish our meetings in South Korea, China and I will have a really fair and really great trade deal together.
They stopped buying our soybeans, they thought that was punishment. And it is… https://t.co/Mj4oW0CZo4 pic.twitter.com/i0ea0Bao3G
— Mario Nawfal (@MarioNawfal) October 20, 2025
Writers and editors can be contacted at [email protected] with feedback, tips, or corrections.
V. Saxena is a staff writer with a decade of experience as a professional writer, and a lifetime of experience as an avid news junkie. He holds a degree in computer technology from Purdue University. Saxena also contributes to BizPac Review.
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