The US and Australia have signed a deal intended to boost supplies of rare earths and other critical minerals, as the Trump administration looks for ways to counter China’s dominance of the market.

Australian Prime Minister Anthony Albanese said the deal would support a pipeline of $8.5bn (£6.3bn) “ready-to-go” projects that would expand his country’s mining and processing abilities.

It includes $1bn to be invested by the two countries in projects in the US and Australia over the next six months, a framework text says.

The US and Australia have been working on these issues since Trump’s first term, but Albanese said the latest agreement would take the partnership to the “next level”.

China currently controls about 70% of rare earths mining and 90% of the processing of the materials, which are found in everything from defence equipment to computer chips and cars.

US companies rely heavily on the materials, making them vulnerable this year as China has taken steps to restrict access to supplies in response to new US tariffs and other tensions.

Albanese said the agreement was aimed at speeding investment in three types of projects, including US investments in processing facilities in Australia.

The two countries also agreed to work together on issues such as pricing, permitting, and rules for government review of the sales of companies and projects in the sector.

The US separately said it would invest in the construction of a 100 tonnes-per-year advanced gallium refinery in Western Australia and was preparing to offer some $2.2bn in financing to advance critical minerals projects via its Export-Import Bank.

The Trump administration in recent months has already announced a series of investments in companies such as US rare earths miner MP Materials and Canada’s Trilogy Metals and Lithium America’s, which have projects in the US.

In exchange for the support, it has received ownership stakes in the firms.

Ahead of the meeting, shares in Australian companies such as Lynas Rare Earths had jumped on the prospect of increased support. Lynas was awarded a contract by the US Defense Department a few years ago and is working on a project in Texas.

The framework published by the White House was light on details, reflecting the delicate issues at play.

Australia is a major source of critical minerals but like the US, it relies on China for the processing required to turn the materials into something companies can use.

China is also Australia’s biggest trade partner.