Anthony Albanese and Joe Biden to strike new economic, defence and climate ‘alliance for the future’

Anthony Albanese and Joe Biden will announce major economic partnerships focused on clean energy, climate, defence co-operation and critical minerals.

Prime Minister Anthony Albanese (L), US President Joe Biden (C) and British Prime Minister Rishi Sunak (R) announcing the AUKUS nuclear submarine agreement in March. Picture: Leon Neal/Getty Images

Anthony Albanese and Joe Biden will announce major economic partnerships next week focused on strengthening ties around clean energy, climate change, defence co-operation and critical minerals amid escalating tensions in the Middle East and surging oil prices.

The US President will host an official state dinner at the White House for the Prime Minister on Wednesday night (US time), bringing together prominent Australian and US business, defence and diplomatic officials to usher in a new Australia-US “alliance for the future”.

Mr Albanese, who will open the new Australian embassy in Washington alongside ambassador Kevin Rudd during the week-long trip, will discuss climate action, clean energy partnerships, AUKUS progress and Indo-­Pacific stability with Mr Biden.

Ahead of the ninth meeting between the pair, Mr Albanese said “our nations are united by our common values, our deep history and our shared vision but this visit … will be focused on building an ­alliance for the future”.

The delegation of industry, banking and mining leaders, which includes Business Council of Australia chief Bran Black, Australian Chamber of Commerce and Industry chief executive Andrew McKellar and Westpac chief risk officer Ryan Zanin, will focus on strengthening investment and innovation relationships.

Mr Albanese, who with US officials flagged a “range of economic announcements” in Washington, said he looked forward to engaging with Mr Biden, Vice-President Kamala Harris, Secretary of State Antony Blinken and US Defence Secretary Lloyd Austin.

In parliament on Thursday, Mr Albanese said advancing the AUKUS defence pact was critical in “ensuring Australia plays our part in upholding the stability, ­security and prosperity of our ­region”.

The government, which is devising its own version of the Biden administration’s $US3 trillion Inflation Reduction Act, is keen to expand partnerships and investment with the US.

Amid global competition to access Australia’s critical minerals and rare earths deposits, industry leaders are pushing hard to advance investment and operational support from the US to establish domestic refining, processing and manufacturing operations.

Mr Albanese, who will also travel to Beijing, Cook Islands and San Francisco over the next month, said “we’re a mid-size power, so we do have influence”.

“Whether it’s the economy, climate change, energy, resources or the battle against global inflation, being part of these conversations means Australia gets to shape the solutions,” he said.

“We punch above our weight located where we are in the world, in the fastest-growing region … in human history.”

Mr Albanese said “we need to … know who our friends are and engage with them in our common interests of promoting democratic values, of promoting engagement in our region in a positive way”.

“Our nations are united by our common values, our deep history and our shared vision, but this visit will be focused on building an alliance for the future,” he said.

“At a time of global uncertainty, working with global partners is vital … Whether it’s the economy, climate change, energy, resources or the battle against global inflation, being part of these conversations means Australia gets to shape the solutions.”

Peter Dutton encouraged Mr Albanese to visit Tel Aviv as a “priority” to ensure Australia was part of a global alliance to keep the pressure on “those who want a wider conflict in the region”.