U.S. and Japan Sign Rare Earths Deal Amid China Tensions

Tokyo, Japan – The United States and Japan have signed a new agreement aimed at securing supplies of critical minerals and rare earth elements, a move that comes as President Donald Trump seeks to reduce reliance on China. The deal was announced during Trump’s visit to Japan this week.

Japan’s Prime Minister Sanae Takaichi hailed the agreement as a significant step in bolstering bilateral relations. She stated, “This is the greatest alliance in the world,” emphasizing a commitment to a new era of cooperation.

The pact aims to ensure the resilience and security of supply chains for essential resources used in electronics, military systems, and renewable energy technologies. It aligns with recent memoranda of understanding between the U.S. and other nations, including Malaysia and Thailand.

China currently holds substantial market share in rare earth elements, controlling approximately 70% of global production and nearly 90% of refining capacity. This dominance was highlighted after Beijing expanded export controls on rare earth products earlier this month, renewing tensions between the U.S. and China.

Following the signing, Trump remarked, “In about a year from now, we’ll have so much critical mineral and rare earths, and you won’t know what to do with them,” showcasing his optimistic outlook for American resource abundance.

However, experts caution that this goal may take years to achieve due to the complexity of developing alternative supply chains. John Mavrogenes, an economic geology professor at the Australian National University, noted, “China is too far ahead of the world,” predicting a decade or more to fully establish new networks.

This agreement with Japan is part of a broader strategy by the Trump administration to build alliances and diversify resources away from China. Analysts believe it will enhance U.S. leverage in future negotiations with Beijing. Takaichi’s gestures of goodwill, including gifting 250 cherry trees to the U.S. for its 250th anniversary, underline the significance of the partnership.

The impact of this agreement extends beyond economics, as it symbolizes a united front against China’s ambitious resource policies. As the U.S. navigates its own dependence on rare earth elements, it seeks to create stable and ethical supply chains that may reshape global industry standards.