US, Japan leaders ink rare earths deal

US President Donald Trump and Japanese Prime Minister Sanae Takaichi signed a framework agreement to secure the supply of rare earths, as both countries aim to reduce China’s dominance of key electronic components.

The leaders signed the documents on critical minerals at the neo-Baroque-style Akasaka Palace in Tokyo, beneath three chandeliers adorned from top to bottom with gold ornamentation, as aides applauded.

No public mention was made by the leaders regarding China, which processes over 90% of the world’s rare earths, raising concerns about each country’s mineral supply chain. Beijing has recently expanded export curbs.

Trump and Chinese President Xi Jinping are set to meet on Thursday on the sidelines of the Asia-Pacific Economic Cooperation in South Korea to discuss a deal that would pause steeper US tariffs and Chinese rare earths export controls.

Japan and the U.S. would use economic policy tools and coordinated investment to speed up the “development of diversified, liquid, and fair markets for critical minerals and rare earths” and aim to provide financial support to selected projects within the next six months, the White House said.

Both countries would consider a mutually complementary stockpiling arrangement and cooperate with other international partners to ensure supply chain security, it added in a statement.

While dominated by China, the US and Myanmar control 12% and 8% of global rare earth extraction, according to Eurasia Group, and Malaysia and Vietnam cover another 4% and 1% of processing, respectively.