The United States and Australia have committed more than $3.5 billion to support critical minerals development, deepening cooperation between the two allies as they work to secure supply chains dominated by China.

The funding, totaling over A$5 billion, nearly doubles the initial pledges made under a bilateral framework agreement reached six months ago. The initiative focuses on boosting Australian mining and refining capacity for materials essential to defense systems, advanced manufacturing, and energy technologies.

Officials say the effort is designed to reduce dependence on Chinese-controlled processing, particularly in rare earth elements, where Beijing has long held a dominant position due to its advanced refining capabilities.

Madeleine King said the new investments reflect both countries following through on commitments made during earlier talks in Washington, emphasizing the strategic importance of critical minerals to economic and national security.

The funding will be distributed through Export Finance Australia and the Export-Import Bank of the United States, which are backing a range of projects across Australia.

Among the largest initiatives is a rare earth refinery project led by Tronox Holdings, which received combined support worth roughly A$849 million. The project is expected to expand production of mixed rare earth carbonate, a key input for high-tech manufacturing and defense applications.

Additional backing of up to A$1 billion has been pledged for the Kalgoorlie Nickel Project operated by Ardea Resources in Western Australia.

Other projects receiving support include ventures led by Alcoa and Arafura Resources, along with developments involving graphite, magnesium, tungsten, and other strategic materials.

Australia holds significant reserves of critical minerals, but much of the global refining capacity remains concentrated in China. By expanding domestic processing capabilities, the U.S. and Australia aim to strengthen supply resilience and support industrial capacity in both countries.

The investment marks a broader push by Western nations to secure access to key resources amid rising geopolitical competition and growing demand for materials essential to emerging technologies.