United States President Donald Trump and Japanese Prime Minister Sanae Takaichi have signed a new framework agreement to strengthen cooperation on rare earths and critical minerals supply. The signing took place on Tuesday at Tokyo’s Akasaka Palace, where the two leaders met to advance efforts to reduce reliance on China’s control of rare earth processing and supply chains. The agreement aims to ensure both countries have stable access to essential materials used in advanced electronics, renewable energy systems, and defense manufacturing.
While neither Trump nor Takaichi directly mentioned China during the ceremony, the deal reflects shared concerns about Beijing’s growing influence in the global rare earths market. China currently processes more than 90 percent of the world’s rare earth elements, which are essential for semiconductors, batteries, and other high-tech components. The White House said in a statement that both countries would coordinate investments and use economic policy tools to develop diversified and transparent markets for these materials. The framework also includes financial commitments to selected projects within six months, a mutually complementary stockpiling arrangement, and cooperation with international partners to strengthen supply chain security.
The timing of the agreement is particularly significant as Trump is scheduled to meet Chinese President Xi Jinping later this week during the Asia-Pacific Economic Cooperation summit in South Korea. The meeting is expected to address US tariffs and China’s export restrictions on rare earths. According to analysts, the rare earths pact with Japan strengthens Washington’s negotiating position ahead of those discussions. Meanwhile, both the United States and Myanmar account for about 12 percent and 8 percent of global rare earth extraction, while Malaysia and Vietnam contribute smaller shares of 4 percent and 1 percent respectively, according to data from Eurasia Group.
Japan has also pledged a $550 billion investment into the US economy as part of a broader trade and energy partnership. Sources familiar with the talks indicated that the investment could extend to power generation, liquefied natural gas (LNG), and related sectors. Ahead of Trump’s visit to Asia, the US had already intensified pressure on energy buyers, including Japan, to halt imports from Russia by imposing sanctions on Rosneft and Lukoil, two of Moscow’s largest oil exporters. Japan, in turn, has expanded its LNG imports from the US in recent years to diversify its energy sources and reduce dependence on Australian and Russian supplies.
Japanese companies such as Jera and Tokyo Gas have recently entered long-term agreements to purchase US LNG, signaling a shift in the country’s energy procurement strategy. Jera, Japan’s top LNG buyer, has agreed to purchase up to 5.5 million metric tons per annum of LNG from US suppliers under 20-year contracts beginning around 2030. Tokyo Gas also signed a preliminary deal to buy 1 million metric tons of LNG annually from the Alaska LNG project, complementing its existing commitments in the US Gulf Coast. However, Japan still relies on Russia’s Sakhalin-2 LNG project for around 9 percent of its gas needs, with most contracts set to expire between 2028 and 2033.
Energy experts have noted that Japan faces a delicate balance between meeting its energy security needs and adhering to US-led sanctions. Nobuo Tanaka, CEO of Tanaka Global Inc., remarked that while the US encourages Japan to reduce Russian energy imports, cost and distance remain key considerations. LNG from Sakhalin can be shipped in a few days, while supplies from Alaska or the Gulf Coast take significantly longer and cost more. The new US-Japan cooperation on rare earths and energy aims to mitigate such vulnerabilities, ensuring long-term economic stability and strategic alignment between the two allies.
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