Stage is set for concrete action 4 min read
The United States and Australia have signed a landmark bilateral framework (the Framework) in Washington, D.C., aimed at securing critical minerals and rare earths supply chains vital for defence, advanced manufacturing and clean-energy technologies. President Trump and Prime Minister Albanese announced the Framework as a strategic measure to build a more independent and resilient global critical minerals market.
Key takeaways
- On 20 October 2025, Australia and the US entered into a joint policy framework for securing access to critical minerals and rare earths, which are essential to a wide range of strategic industries. This marks a significant step in aligning policy and investment priorities between the two countries.
- The Framework reflects a shared recognition of the need to reduce reliance on concentrated supply chains, and to build more resilient, diversified sources of critical minerals and rare earths. It also signals a willingness to use public and private tools to support industry development and manage geopolitical risks.
- While the Framework is non-binding and high level, it sets the stage for more concrete actions. Industry participants can expect increased engagement from government, new funding opportunities and regulatory developments that aim to accelerate project delivery, and improve market stability and pricing certainty and transparency.
What is the Framework?
The Framework is a non-binding, common policy action plan agreed between US President Trump and Australian Prime Minister Albanese. It aims to strengthen cooperation between the US and Australia to secure and diversify supply chains for critical minerals and rare earths, which are essential for defence, clean energy and advanced technologies.
Key terms of the Framework
| Area | Summary |
|---|---|
| Securing Supply | Joint efforts to accelerate reliable access to critical minerals and rare earths through utilisation of the US industrial stockpile and Australia’s Strategic Reserve |
| Direct Investment | Mobilisation of government/private finance (guarantees, loans, equity), offtake arrangements, insurance, and regulatory facilitation |
| Financing Commitment | At least US$ 1 billion each, within six months, towards projects delivering end products to both markets |
| Ministerial Engagement | Convening a Mining, Minerals and Metals Investment Ministerial meeting within 180 days for strategic oversight |
| Permitting Reforms | Streamlining/regulating permitting for mining, separation, and processing in line with respective domestic legal frameworks |
| Asset Sale Controls | Strengthening diplomatic or legal tools to review critical mineral asset sales on national security grounds |
| Recycling & Scrap Management | Investing in critical minerals and rare earths recycling technologies and promoting scrap-based supply chain diversification |
| Geological Mapping | Joint mapping efforts to identify and diversify mineral sources, domestically and elsewhere |
| Rapid Response Group | Establishing a US–Australia Critical Minerals Supply Security Response Group, co-led by the US Secretary of Energy and the Australian Minister for Resources |
What might implementation of the Framework look like?
While the Framework sets out a clear strategic direction for both Australia and the US in the development of critical minerals and rare earths policy, it remains broad in nature and detailed implementation mechanisms are yet to be announced. However, based on principles reflected in the Framework, critical minerals and rare earths miners could, hopefully, expect to see the following near-term developments in the critical minerals and rare earths industry:
- Price Floors in Offtake Agreements: to support project bankability and counter market volatility, governments may backstop pricing through minimum price commitments in offtake arrangements, particularly for high-risk processing ventures (eg through the use of contracts for difference).
- Strategic Debt and Equity Funding: continued deployment of public capital is expected to take the form of concessional loans, equity stakes and credit guarantees. These instruments will likely be channelled through existing vehicles such as Export Finance Australia and US EXIM.
- Heightened Foreign Investment Scrutiny: the Framework’s emphasis on national security will likely translate into the even more rigorous review of foreign investment proposals involving critical minerals assets, with the potential for expanded use of conditional approvals and divestment orders.
- Acceleration of Australia’s Strategic Reserve: the Framework will likely accelerate legislative and policy development of Australia's Critical Minerals Strategic Reserve announced earlier this year.
- Development of ESG Standards: a proposed standards-based trading system which may necessitate the development of new certification regimes for ESG performance, origin traceability and processing integrity.
Next steps
It appears that the immediate next steps will be further government engagement as per the proposed Mining, Minerals and Metals Investment Ministerial meeting, which is scheduled to occur within 180 days. We expect this will serve as a catalyst for further action around the detailed working of the Reserve, which has, to date, remained high level.
More generally, the Framework underscores the ongoing strategic importance and attractiveness of Australia's critical minerals and rare earths deposits to global supply chains. We anticipate this will continue to drive further corporate activity in the Australian market, particularly in light of the commitment by the US and Australia governments to invest $3 billon together in critical minerals projects in the next six months. In particular, we expect Australian explorers, developers and producers of heavy rare earths to have access to significant liquidity, and be squarely in the sights of offshore bidders and likely to attract interest from other sources of foreign sovereign capital. We have already seen this momentum result in Australian rare earth's developer Northern Minerals announce a letter of intent in respect of a A$500m funding package provided by EFA and US EXIM.