The United States and Australia sign an important minerals deal worth $3 billion

President Donald Trump and Australian Prime Minister Anthony Albanese signed an agreement Monday to pump billions of dollars into critical minerals projects.

Together, the United States and Australia will contribute $3 billion to the projects over the next six months. The governments said the total expected value of the project is $8.5 billion.

As part of the deal, the US Department of Defense will also invest in a gallium refinery in Western Australia capable of producing 100 tons per year. The United States currently imports approximately 21 tons of gallium, representing 100% of domestic consumption, according to the US Geological Survey.

The move comes as China imposes restrictions on exports of some minerals, including rare earth elements, which are vital to the production of electronics and electric motors. Gallium, for example, is used in microwave circuits and blue and violet LEDs, which can be used to make powerful lasers.

Alongside the critical minerals deal, Australia has agreed to buy $1.2 billion worth of autonomous underwater vehicles (AUVs) from defense startup Anduril. The White House did not specify whether the purchase agreement is new or part of a previously announced $1.12 billion program under which Anduril will deliver a fleet of Ghost Shark AUVs to the Australian Navy. This deal was announced in September.