Major geopolitical move: Trump signs $8.5 billion pact with Australia involving nuclear submarines

Washington (The Uttam Hindu): Amid the ongoing trade war between the US and China, President Donald Trump has taken a major strategic step. Trump signed a significant agreement with Australian Prime Minister Anthony Albanese at the White House. Under this $8.5 billion deal, Australia will supply rare earth minerals to the US, in exchange for which the US will provide Australia with a nuclear submarine.

Following the meeting, Prime Minister Albanese stated that the deal would elevate relations between the two countries to new heights. He emphasized that the agreement would loosen China's stranglehold on the supply of rare earth minerals, which have long been a market leader. These minerals are crucial for modern technology products.

Statistics show that Australia ranks fifth in the world in the production of lithium, cobalt and manganese. These minerals are used in everything from semiconductors to defence hardware, electric cars and wind turbines.

However, despite being a leader in mining, Australia lags behind China in processing. Currently, China leads in refining lithium and nickel. Australia has to send approximately 90% of its total lithium production to China for processing, which generates substantial profits.

These rare minerals are also used in missiles and solar panels. According to the new deal, Australia and the United States will jointly invest $3 billion in this sector over the next six months.

Experts say that if the US were to source these minerals from Australia and process them itself, it would be more reliable than China. Outside of China, only Australia's Lynas Bills company processes rare earth minerals. Under the agreement, this Australian company will now set up its plant in Texas, USA. Analysts believe this deal will be a major blow to China's monopoly.