US President Donald Trump and Australian Prime Minister Anthony Albanese signed an agreement on critical minerals and rare earths on Monday (October 20), which Albanese said includes projects worth up to $8.5 billion.

"Over the next six months, Australia and the United States will contribute $1 billion in funding for immediately operational projects," Albanese said during a meeting with Trump at the White House.

However, a subsequent White House fact sheet stated that the two countries will invest more than $3 billion in critical minerals projects over the next six months. The White House described the agreement as a "framework."

The White House also stated that the U.S. Export-Import Bank will issue seven letters of intent, providing more than $2.2 billion in financing, unlocking a total of up to $5 billion in investment.

Media outlets have requested clarification from the White House and the Australian Prime Minister's Office regarding the discrepancies between Albanese's statement and the fact sheet.

The framework agreement between Australia and the United States comes as the Trump administration seeks to establish an independent supply chain for critical minerals and rare earths.

Rare earths are a subset of critical minerals. They are used to produce magnets, which are key inputs for U.S. weapons platforms, semiconductor manufacturing, robotics, and electric vehicles.

The United States is highly dependent on rare earth imports. Australia, a close ally of the United States, is one of the few countries in the world that processes rare earths.

Pentagon Investment in Australia

Albanese said the two countries will have three sets of joint projects involving companies such as Alcoa. The prime minister said the United States will invest in rare earth processing projects in Australia. He said one of the projects will be a joint venture between Australia, the United States, and Japan.

"What we're trying to do here is seize existing opportunities," Albanese told reporters.

According to the White House, the Pentagon will invest in a 100-metric-ton-per-year gallium refinery in Western Australia. Alcoa announced in August that it was exploring the feasibility of a gallium project with Japan at one of its alumina refineries in Western Australia.

“In about a year, we’re going to have so many critical minerals and rare earths that you’re not going to know what to do with them,” Trump told reporters. Trump said the United States was also working with other countries to build a supply chain.