US and Japan Forge Alliance on Rare Earths Supply Chain

The U.S. and Japan have signed a framework agreement to secure critical minerals and rare earths supply. The deal aims to strengthen both nations' supply chains by using economic policy tools and accelerating development of fair markets. This initiative comes amid China's expansion of export curbs.

In a significant development, U.S. President Donald Trump and Japan's Prime Minister Sanae Takaichi have signed a framework agreement designed to fortify the supply of critical minerals and rare earths. This pivotal accord was finalized during President Trump's official visit to Japan, where discussions centered on bolstering supply chains crucial to industries such as renewable energy, electronics, and automotive sectors.

The agreement outlines a cooperative strategy between the U.S. and Japan, emphasizing the use of economic policy tools and coordinated investment to create diversified and equitable markets for critical elements. This move is largely seen as a response to China's dominance in the sector, where it processes over 90% of the world's rare earths and has intensified export restrictions.

Concurrently, the U.S. is eager to fortify its strategic mineral reserves, given its limited operational rare earth mines. The countries agreed to expedite permitting processes and tackle unfair trade practices. They are also exploring complementary stockpiling measures and partnership with other nations to enhance supply chain security.

(With inputs from agencies.)