Posted on 31 Oct 2025
Japan and the US have signed a framework to boost cooperation on rare earth elements (REEs), Kallanish reports.
The two countries said they “intend to support the supply of raw and processed critical minerals and rare earths” through economic policy tools and coordinated investment, mobilising private and public funding via grants, guarantees, loans, equity, or offtake agreements. Both governments will look at speeding up permitting timelines and will jointly identify “projects of interest” to which they will provide financial support.
Tokyo and Washington are establishing a “supply security rapid response group” to identify priority minerals and address supply vulnerabilities, and may also consider “a mutually complementary stockpiling arrangement.”
The deal was closed by Japan’s Prime Minister Takaichi Sanae and US President Donald Trump on Monday in Tokyo, where they also signed a memorandum of cooperation on technologies such as artificial intelligence, quantum technology, and biotechnology “to usher in the next golden age of innovation,” the White House says.
“Both Japan and the United States are overly dependent on specific countries, so we need to diversify our sources of supply. This will make a big difference,” Takaichi said at a press conference on Tuesday.
The news follows a flurry of deals secured by the US with Cambodia, Malaysia, Thailand, and Vietnam over the weekend, with Kuala Lumpur in particular committing never to ban or restrict exports of REEs and rare earth magnets to the US. Washington has been ramping up efforts to secure REE supplies outside of China, which dominates the rare earth supply chain and recently further restricted their exports, which risks significant disruption for global buyers.
Trump, who threatened 100% tariffs on China in retaliation for the restrictions, is due to meet his Chinese counterpart, Xi Jinping, on Thursday to discuss a trade deal.
The US produced 45,000 tonnes of rare earth oxide (REO) equivalent last year, according to the US Geological Survey, and relied on imports for 80% of its compounds and metals consumption. No data was disclosed for the net import reliance of mineral concentrates.
Japan does not produce rare earths domestically and is looking at deep-sea mining opportunities. However, it has rare earths processing capacity.
“Japan remains one of the few nations outside China with deep magnet technology expertise. Firms such as Shin-Etsu Chemical and Hitachi Metals pioneered core... technologies and continue to lead in advanced materials engineering,” says Jamie Underwood, principal consultant at SFA Oxford. “The US, by contrast, has limited magnet manufacturing capacity, making this partnership an attempt to rebuild industrial capability from midstream processing through to finished magnets.”
Source:Kallanish
