SYDNEY (Kyodo) -- U.S. President Donald Trump and Australian Prime Minister Anthony Albanese signed an agreement on critical minerals and rare earths in Washington on Monday, to secure supply and counter China's dominance in the sector.

The "landmark" deal aims to secure supply in the mining and processing of critical minerals and rare earths by supporting an $8.5 billion dollar pipeline of priority projects, according to Albanese, as both countries seek to reduce reliance on China for the materials essential to defense manufacturing and advanced technologies.

The Australian and U.S. governments plan to invest more than $3 billion in critical mineral projects over the next six months, with recoverable resources in the projects estimated to be worth $53 billion, according to the White House.

This includes a trilateral joint investment with Japan on an advanced gallium refinery in Western Australia, an essential critical mineral for defense and semiconductor manufacturing, the Australian government said.

The two leaders signed the deal at the White House in their first official meeting since Trump's return to office in January.

"Cooperation on critical minerals and rare earth supply chains is testament to the trusted partnership between Australia and the United States as strategic defense allies," Albanese said.

China currently controls over 60 percent of rare earth production and over 90 percent of the processing of the materials that are essential to modern industry, with wide-ranging applications including in electric vehicles, computer chips and defense equipment.

Beijing has shown a readiness to use its dominance in the supply of rare earths as a diplomatic weapon, imposing export restrictions on the materials in April in response to the Trump administration's high tariffs, and further tightening the controls earlier this month.

"In about a year from now, we'll have so much critical mineral and rare earth that you won't know what to do with them," Trump told reporters at the White House.

US, Australia sign critical-minerals deal to counter China