Shares in companies spanning Australia’s mining and resources sector have been given an immediate boost by a multi-billion dollar critical minerals deal and sealed at a long-awaited meeting between Anthony Albanese and Donald Trump on Tuesday.
The cabinet room meeting saw the two leaders sign a historic agreement on rare earth and critical minerals processing, which is being seen as an attempt by the US to counter China’s hold on the market.
US president Trump played up his friendship with the prime minister during the meeting at the White House on Tuesday (AEDT), saying the US believed there had “never been anyone better” than Australia.
“This is an $US8.5 billion ($A13 billion) pipeline that we have ready to go,” Mr Albanese said while signing the deal as Mr Trump noted it had been negotiated over several months.
“Australia has a view similar to putting America first,” the prime minister added.
“Ours is about not just digging (minerals) up and exporting them. How do we have benefit across the supply chain?
The agreement involves the processing of minerals, and includes joint investments between the US and Australia, projects in Australia and other joint projects involving Japan.
Australia and the US will together invest about $US3 billion ($A4.6 billion) in critical mineral projects within six months, the White House said.
The US government will also invest in a refinery for the critical mineral gallium in Western Australia.
News of the deal delivered a boost to a bunch of Australia’s major mining and resources companies, including Alcoa, South32, Pilbara Minerals and Evolution Mining.
Other beneficiaries of the announcement include Lynas Rare Earths and mineral sand miner Iluka Resources, while stock in smaller rare earth miner VHM jumped around 30% and Northern Minerals surged by more than 16%. Latrobe Magnesium, Australia’s primary producer of the critical metal magnesium, rose nearly 47%.Â
For decades, Australia’s alliance with the United States has supported security and prosperity.
— Anthony Albanese (@AlboMP) October 20, 2025
Our partnership is strong. And I’m here in Washington D.C. with President Trump building on it for the future.
Today we’ve announced we’ll make more things together – using… pic.twitter.com/VJFxFEVLoo
The US president was effusive in his praise for Mr Albanese during the meeting.
“We fought wars together and we never had any doubts. It’s a great honour to have you as my friend,” Mr Trump said.
“It’s a great honour to have you in the United States of America.”
Mr Albanese praised the US-Australia relationship and said Mr Trump’s work on a Middle East ceasefire was “an extraordinary achievement”.
There had been hope a critical minerals deal could be used as leverage for a tariff reduction on Australian goods entering the US, however, the prime minister didn’t walk away with an exemption.
The prime minister did receive assurances from the president on the future of the AUKUS agreement, following uncertainty over a US review of the deal.
When asked about the submarine deal, Mr Trump said “they’re getting them”.
Under AUKUS, the US would give Australia Virginia-class nuclear submarines from the early 2030s.
US Navy Secretary John Phelan told the meeting the US and Australia were working very closely to improve the original AUKUS framework for all three parties, which includes the UK, “and clarify some of the ambiguity that was in the prior agreement”.
Australia also agreed to purchase $US1.2 billion ($A1.8 billion) in Anduril unmanned underwater vehicles and take delivery of a first tranche of Apache helicopters in a separate $US2.6 billion ($A4 billion) deal, the White House said.
The only awkward moment during the meeting came when Mr Trump was asked about past criticism of him by Kevin Rudd, who is now the Australia’s ambassador to the US.
Mr Rudd, who once called Mr Trump a traitor to the west, told the president that happened “before I took this position”.
“I don’t like you either, and I probably never will,” Mr Trump said, as Mr Albanese and the Australian delegation laughed.
Foreign Minister Penny Wong said the meeting between the two leaders had been a success.
“This was a very good outcome, and reaffirms the approach that the government has taken, a calm, mature approach in the national interest,” she told ABC radio.
Senator Wong said Australia was still in the best position out of other countries when it came to tariffs from the US.
Opposition Leader Sussan Ley said more work was needed to secure a tariff exemption.
Source: AAP, Andrew Brown
