Breaking News! 🇺🇸🇦🇺 The US and Australia just signed a landmark deal to secure gallium supplies, a critical mineral for tech industries. What does this mean for the future of tech and global trade? Watch to find out! 💡📈 #USAustraliaDeal #Gallium #TechNews"
00:00Hello, I am Irfan. You are watching latest news regarding Australia and USA signed a critical minerals deal to take on China's monopoly.
00:08Here's what you need to know. A crucial minerals deal has been signed by the US and Australia to break China's almost complete hold on materials for commercial, clean energy and advanced military hardware.
00:21Donald Trump and Anthony Albanese have agreed to contribute at least $1 billion or $1.54 billion to a $8.5 billion or $13 billion pipeline of projects in both countries over the next six months to support their respective commercial and defense industries.
00:371. Albanese named two priority projects in Australia.
00:41The Australian Prime Minister specifically referred to two priority projects, one by Alcoa and the other by Arafura Rare Earths, that will get an injection of capital from the government as part of a broader list.
00:54The first is a proposed gallium plant in Western Australia to be co-located at one of Alcoa's Illumina refineries.
01:01A crucial strategic mineral, gallium is used in advanced electronic warfare systems like radar and missile guidance technology, as well as military equipment.
01:10China has almost complete control over the production of gallium, which is typically produced as a by-product by the country's extensive network of aluminum smelters.
01:20The United States is entirely dependent on gallium imports.
01:25Like much of the critical mineral supply chain, China priced out rival gallium producers over several decades until it achieved its monopoly position.
01:33The U.S. briefly had a dedicated gallium mine in the 1980s, according to the Atlantic Council and American think tank, but it proved unsustainable.
01:42The Australian government will invest up to $200 million in the Alcoa operation, while the U.S. will also have an ownership stake.
01:50Japan is also a project partner.
01:52The Australian government announced it will provide a $100 million equity injection into the Aerofora Rare Earths project, located north of Alice Springs in the Northern Territory.
02:03The company, which is backed by Gina Reinhardt, the richest person in Australia, plans to produce the rare earth oxides neodymium and praseodymium, which are necessary for making magnets.
02:15Medical devices, combustion and electric motors, wind turbines, and ballistic missile guidance systems all make use of rare earth magnets.
02:24The U.S. government is considering investing up to $300 million, but first requires further due diligence.
02:32Australia has some rare earths processing capability through Lena's WA facility, and the government has backed the development of a project by Aluca design to produce several oxides.
02:42The deal doesn't necessarily mean Australia will become a high-end manufacturer.
02:47The final product is intended for delivery to Australian and U.S. customers, not China.
02:52Already, investors are making money.
02:55Australian critical minerals companies have enjoyed a stellar several weeks, with share prices rocketing amid hopes a new mineral boom has taken hold.
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