US President Donald Trump and Japan’s Prime Minister Sanae Takaichi signed a new deal in Tokyo aimed at securing the supply of critical minerals and rare earth elements, according to a statement from the White House.
The pact, finalized during Trump’s visit to Japan as part of his Asia tour, seeks to strengthen supply chain resilience and strategic autonomy in a sector long dominated by China, which processes more than 90 percent of the world’s rare earth materials.
Countering China’s grip on rare earths with the deal signed by the US and Japan
Rare earth elements are essential components in modern technologies—from renewable energy systems and electric vehicles to advanced electronics and defense equipment. Beijing’s control of global processing capacity has given China a significant geoeconomic advantage, sparking concern in Washington, Tokyo, and Brussels.
The US–Japan agreement aims to reduce dependency on Chinese supply chains, accelerating joint investments, mining partnerships, and processing initiatives. The White House said the goal is to create “diverse, liquid, and fair markets” for critical minerals and related technologies.
Coordinated investments and regulatory reforms
Under the deal, US and Japan will mobilize economic and industrial policy tools to finance projects that expand production and refining capacity for critical materials. They also pledged to simplify permitting procedures and remove bureaucratic barriers to new mining ventures.
The two nations will work together to address non-market practices and unfair trade behavior that distort competition—a clear reference to concerns over Chinese state-backed policies in resource sectors.
Currently, the United States operates only one active rare earth mine, while Japan remains heavily reliant on imported raw materials. Both view this agreement as a step toward greater technological self-reliance and energy security.
Building strategic stockpiles and global alliances
According to the White House, Washington and Tokyo will consider establishing joint stockpiles of critical minerals to safeguard supplies during market disruptions. The partners also plan to expand cooperation with other nations, including those in the Indo-Pacific and Europe, to form a broader multilateral network for supply chain security.
This initiative comes amid a wider realignment of global geoeconomics, as access to high-tech raw materials increasingly defines geopolitical influence. Trump is expected to meet Chinese President Xi Jinping tomorrow, with rare earths likely to feature prominently on the agenda.
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