Australia is the ninth largest foreign investor in the United States and second among all Indo-Pacific countries. With Australian Treasurer Jim Chalmers' recent visit to Washington DC, US-Australia economic relations showcase massive potential for growth.
Australia is a major economic partner of the United States, ranking ninth among all foreign investors, and second among Indo-Pacific countries, with nearly $1.2 trillion invested in the United States and nearly $77 billion in annual bilateral trade as of 2024, according to the Bureau of Economic Analysis. Australian companies employ approximately 150,000 people in the United States, including around 19,000 in California and Texas. The United States also maintains a trade surplus with Australia, sitting at roughly $17.9 billion in 2024.
Recently, Australian Secretary of the Treasury, Jim Chalmers visited Washington DC to discuss United States-Australia economic relations with the US Secretary of the Treasury Scott Bessent, focusing on how capital markets, critical minerals, and trade benefit both countries. Secretary Chalmers also attended the Australian Superannuation Investment Summit, where Australia’s largest super funds meet with leading US investors.
Australian investment in the United States spans across different sectors, especially in information technology. Most notably, Atlassian, an Australian tech startup founded in 2002, established an office in San Francisco in 2005, later expanding to New York, Austin, Moutain View, and Boston, employing thousands of American workers. In October 2024, AustralianSuper, an Australian pension fund, invested $1.7 billion in DataBank, a US-based data company, to build three facilities in Atlanta, Georgia; Dallas, Texas; and Culpeper, Virginia. Earlier this year, Australian investors from the Macquarie Group plan to invest up to $5 billion in the US digital infrastructure company, Applied Digital Corporation, taking up to 15% of its stake in addition to an initial investment of $900 million to develop high-performance computing data centers, with the option for further investments over the next 30 months.
New projects have been announced in battery technology as well. Novonix, an Australian graphite-manufacturing firm, is looking to invest in a second $1 billion graphite plant in Chattanooga, Tennessee. The firm already operates a plant in the city where they produce graphite, a key component in batteries. The $1 billion investment will help create 500 new full-time jobs in a second factory, generating graphite to supply other industry leaders such as Volkswagen’s or Panasonic’s manufacturing bases in the United States. Additionally, Sicona Battery Technologies is looking to develop its first commercial manufacturing facility in the southeastern United States. The facility plans to produce 6,700 tons of silicon-carbon per year, with the ambition of becoming the largest producer of silicon-carbon anode material in the United States, enough to power more than 3.25 million electronic vehicles per year.
Manufacturing and mining are two industries that benefit from Australian investment. Pratt Industries is investing $5 billion over the next 10 years across various states, such as Pennsylvania and Kentucky, bringing thousands of jobs to these areas. A leader in recycling technology and paper production, Pratt Industries has built several factories, with Georgia Governor Brian Kamp cutting the ribbon for its latest advanced box factory in April 2024, bringing in 125 new jobs for the area. Australian firm Woodside Energy is also heavily invested in the U.S. liquidified natural gas (LNG) industry. In October 2024, the firm invested $1.2 billion in an LNG operation in Louisiana in addition to a previous $2.4 billion investment in a blue ammonia project in Texas, which produces ammonia using new technologies to reduce emissions.
The United States-Australia economic relationship is strong and dynamic, marked by robust bilateral trade and collaboration in key sectors such as AI, battery technology, manufacturing, and natural resources. As one of the largest investors in the United States, Australia has injected trillions of dollars into the economy, generating thousands of jobs nationwide. This enduring partnership not only drives mutual prosperity but also strengthens global economic stability. With such substantial investments and deepening cooperation, Australia is poised to remain a reliable and influential economic partner for the United States in years to come.
Alex Vu is a Spring 2025 Young Professional at the East-West Center in Washington. Alex is currently a junior at the University of South Florida, studying Econometrics & Political Science.