Trump Enlists Japan In Drive To Secure Critical Minerals Supply
The agreement follows a similar deal between the US and Australia announced last week
The US and Japan have signed an agreement to deepen cooperation on critical minerals, adding the Asian country to Washington’s push to reduce its reliance on China.
The governments will work together to “support the supply of raw and processed critical minerals and rare earths crucial to the domestic industries of the United States and Japan,” according to the text of a framework agreement signed by Japanese Prime Minister Sanae Takaichi and President Donald Trump, during his visit to Tokyo.
Although short on specifics, the document spells out a broad range of areas for potential cooperation; from deploying financial assistance or trade measures to stockpiling of commodities and investing in projects. It mentions key products including magnets, batteries, catalysts and optical materials.
The agreement follows a similar deal between the US and Australia announced last week, which aims to boost Washington’s access to rare earths and other critical minerals. US efforts to cut China out of supply chains have intensified under Trump, especially since Beijing slapped export controls on rare earths in early April. The White House also signed minerals agreements with Malaysia and Thailand this week.
Read More: Rare Earths Producers Look to US-Led Boom to Blunt China’s Power
The deal has some historical resonance, given that Japan started to reduce its reliance on Chinese rare earths almost 15 years ago. The country invested in Australian-based Lynas Rare Earths Ltd. in 2011 after Beijing temporarily cut off supplies over a territorial dispute. It took two years before trial production began and even longer to ramp up to forecast levels, according to company statements, showing that reshaping supply chains is a time-consuming and expensive process.
“The Participants’ objective is to assist both countries in achieving resilience and security of critical minerals and rare earths supply chains, including mining, separation, and processing,” according to the text of the US-Japan deal. Within six months, the countries “intend to take measures to provide financial support to selected projects to generate end product for delivery to buyers in the United States and Japan and, as appropriate, like-minded countries.”
