During President Donald Trump’s visit to Japan, he and Prime Minister Sanae Takaichi signed a framework agreement to strengthen U.S.-Japan cooperation on rare earths and critical minerals. These resources are essential for electric vehicles, renewable energy, defense systems, and electronics sectors increasingly affected by global supply chain risks and China’s export controls.
Why It Matters:
China currently processes over 90% of the world’s rare earths and has tightened export restrictions, giving it outsized leverage over key global industries. The U.S. and Japan’s move marks a major step toward reducing dependency on China and ensuring stable, transparent, and diversified supply chains. It also highlights the growing strategic dimension of mineral security in U.S.-Asia relations.
United States: Seeking to boost domestic mining and reduce reliance on Chinese materials.
Japan: Looking to secure supplies for its tech and auto industries.
China: Dominant global player likely to view the pact as an economic challenge.
Allied partners: Potential future collaborators in joint mineral projects.
What’s Next:
Both nations plan to coordinate investments, simplify mining permits, and develop joint stockpiling systems. Trump is set to meet Chinese President Xi Jinping later this week, where mineral supply chains could emerge as a key discussion point amid broader U.S.-China trade tensions.
With information from Reuters.
