WHAT’S HAPPENING TODAY: Good afternoon and happy Monday, Daily on Energy readers! We are entering day 20 of a government shutdown, with no end in sight. In other news, President Donald Trump hosted Australian Prime Minister Anthony Albanese at the White House today, where the two leaders signed a deal on critical minerals and rare earths. Meanwhile, with the help of our editor, Joe Lawler, we also take a look at where oil prices stand.
Welcome to Daily on Energy, written by Washington Examiner energy and environment writers Callie Patteson (@CalliePatteson) and Maydeen Merino (@MaydeenMerino). Email cpatteson@washingtonexaminer dot com or mmerino@washingtonexaminer dot com for tips, suggestions, calendar items, and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email, and we’ll add you to our list.
UNITED STATES AND AUSTRALIA SIGN A DEAL ON CRITICAL MINERALS AND RARE EARTHS: President Donald Trump and Australian Prime Minister Anthony Albanese signed a deal on critical minerals and rare earths, with the goal of reducing dependence on China.
Today’s meeting was the first time Albanese has sat down with Trump since he took office again. Australia is leveraging its critical mineral and rare earth deposits to strengthen its partnership and ensure security with the U.S.
“We are discussing critical minerals and rare earths, and we’re going to be signing an agreement that’s been negotiated over a period of four or five months,” Trump said at the White House. “In about a year from now, we’ll have so much critical minerals and rare earths that you won’t know what to do with them.”
Albanese said the deal is an “$8.5 billion pipeline that we have ready to go.”
Australia and the U.S., in the next six months, will provide at least $1 billion in financing for projects in both countries. The deal (read it here) says the U.S. and Australia will safeguard each other’s critical mineral and rare earth markets from unfair trade practices by implementing standards within a pricing framework, which includes establishing price floors.
The deal established a U.S.-Australia Critical Mineral Supply Security Response Group that will be led by Energy Secretary Chris Wright and the Australian Minister for Resources to identify priority minerals and supply vulnerabilities.
The prime minister said there are three groups of projects: individual nation projects, U.S.-Australia joint projects, and collaborative projects involving the U.S., Australia, and Japan.
According to the Center for Strategic and International Studies, Australia possesses 43 of the 55 critical minerals and is one of the world’s major producers of rare earths.
China, which controls the majority of the world’s critical mineral and rare earth supplies, imposed stricter export controls on rare earths earlier this month. Trump said that if China does not reach a trade deal with the U.S., he will impose an additional 100% tariffs on Nov. 1.
“They threatened us with rare earths, and I threatened them with tariffs, but I could also threaten them with many other things, like airplanes,” Trump said. “If we don’t make a deal. We’ll charge them a very substantial tariff, and they’ll be paying us hundreds of billions of dollars a year.”
He added, “We had presidents that allowed China and other countries to get away with murder. We’re not going to allow that.”
CLEVELAND-CLIFFS SHARES SOAR AS STEELMAKERS LOOK INTO RARE EARTHS: Shares of Cleveland Cliffs, the largest steel producer in North America, rose as much as 22% this morning as it announced plans to search for rare earths, Bloomberg reports.
The company said in its earnings release that it conducted geological surveys at two sites —one in Michigan and one in Minnesota —that showed “key indicators of rare-earth mineralization.”
The company’s CEO, Lourenco Goncalves, said, “American manufacturing shouldn’t rely on China or any foreign nation for essential minerals, and Cliffs intends to be part of the solution.”
BRENT CRUDE DROPS BELOW $61 ON OVERSUPPLY FEARS: Oil prices fell today, bringing international benchmark Brent Crude to near the $60 line, in part because of perceptions that the market has become oversupplied.
Brent futures have fallen into contango, meaning that traders have an incentive to pay to store oil in the short term to sell it later at a higher price. One factor might be the threat of trade war escalation between the U.S. and China, which could reduce global demand.
Another factor is that a record 1.24 billion barrels of crude and condensate was moving on oil tankers last week, according to data from analytics firm Vortexa and reported by Bloomberg.
Related – gas prices hit post-pandemic lows: The average price of gasoline fell below $3, according to GasBuddy, marking the earliest date for a sub-$3 price since the pandemic. Trump administration officials touted the price drop this morning.
CHINA’S WIND INDUSTRY PUSHES TO DOUBLE CAPACITY BY END OF THE DECADE: Chinese wind manufacturers Goldwind Science & Technology Co. and Ming Yang Smart Energy Group are among numerous companies aiming to double China’s wind power capacity by 2030.
At the annual China Wind Power conference, nearly a dozen Chinese wind companies announced their goal to install at least 120 gigawatts of wind power capacity annually for the next five years, Bloomberg reports. The outlet said the wind companies’ goal would more than double the country’s wind capacity by the end of the decade.
China, which is the largest emitter of greenhouse gases, is also seeking to cut its emissions by 7% to 10% by 2035. Chinese President Xi Jinping told the United Nations General Assembly last month that it aims to install 3,600 GW of wind and solar capacity by 2035.
China has been leading the race in the renewable energy transition, as it surpasses its wind and solar power targets. Last year, the country added about 80 GW of wind capacity, and Bloomberg reports it is expected to exceed that this year with 94 GW of new projects.
NATURAL GAS EXPORTS TO MEXICO REACH NEW RECORDS: The United States natural gas pipeline exports to Mexico reached record levels, averaging 7.5 billion cubic feet per day in May, the highest amount ever recorded, according to the U.S. Energy Information Administration.
EIA said that U.S. natural gas exports averaged 6.4 Bcf/d in 2024, which is a 25% increase from 2019. It added that total consumption of natural gas in Mexico increased from 7.7 Bcf/d to 8.6 Bcf/d during the same period. EIA said most of the growth concentrated in Mexico’s electric power sector.
DOE HAS A NEW ACTING UNDERSECRETARY OF ENERGY: Energy Secretary Chris Wright announced on Friday he has picked Alex Fitzsimmons to serve as the new acting Under Secretary of Energy.
The news comes just days after E&E News reported that DOE undersecretary Wells Griffith was relieved of his duties. Wright said in a statement that Fitzsimmons has served as a “critical leader” across the department. Fitzsimmons has led the Department’s Office of Cybersecurity, Energy Security, and Emergency Response. He also served at the DOE during the first Trump administration.
“I look forward to working with him as we continue delivering President Trump’s bold energy agenda. We wish Wells Griffith success in his future endeavors,” Wright said.
ICYMI – UPDATE ON TRUMP’S MYSTERIOUS CLAIMS ABOUT INDIA AND RUSSIAN OIL: Trump said again yesterday that India has committed to ending purchases of Russian oil, a claim that India has conspicuously declined to confirm in recent days.
“I spoke with Prime Minister Modi of India, and he said he’s not going to be doing the Russian oil thing,” Trump said in an Air Force One gaggle, according to Reuters.
Trump was asked about India’s denials that any such understanding had been reached. He responded: “But if they want to say that, then they’ll just continue to pay massive tariffs, and they don’t want to do that.”
As a reminder, Trump has placed 50% tariffs on India, half of which were justified as a means to penalize India for importing oil from Russia and providing revenues that Vladimir Putin uses to finance his war in Ukraine.
A LOOK AHEAD:
Oct 20 The American Petroleum Institute is hosting the “America Builds, America Wins” event, featuring Department of the Interior Secretary Doug Burgum.
Oct 21 The Federal Energy Regulatory Commission is holding its Fall Reliability Conference.
Oct 21 The National Center for Energy Analytics will host “Energy Delusions: A Critique of IEA’s Global Critical Mineral Outlook 2025,” featuring Republican Sen. Mike Lee of Utah as well as mineral experts.
Oct 21 The Senate Agriculture, Nutrition and Forestry Committee will hold a markup hearing on several bills, including the Fix Our Forest Act.
Oct 22 The Defense Strategies Institute will hold its Microgrids & Energy Resilience Summit. Speakers include former deputy assistant Army Secretary for Energy Jack Surash and former DOE assistant secretary of the Office of Electricity Bruce Walker.
Oct 22 The U.S. Chamber will host its third annual Chemistry Solutions Forum, featuring Democratic Rep. Scott Peters of California, Republican Gary Palmer of Alabama, and Democratic Rep. Jake Auchincloss of Massachusetts.
Oct 22 The Senate Foreign Relations Committee will hold a markup hearing on several bills, including on critical minerals.
Oct 22 The Center for Strategic and International Studies will hold a virtual discussion on BP Energy Outlook 2025.
Oct 23 The Senate Environment and Public Works Committee will hold a hearing on the beneficial use and regulation of chemicals.
Oct 25 The Center for Strategic and International Studies will hold a webinar on “U.S.-China Relations and the Future of America’s Energy and Automotive Sectors.”
RUNDOWN
Bloomberg Why Trump is Backpedaling A Law to Cut Super Pollutants He Signed
Reuters New copper demand drivers from US, India as China juggernaut slows
Inside Climate News A New Generation of Industries Emerges in Texas From Federal Push for Mining Revival
