US, Japan sign framework deal to secure critical minerals and rare earth supply chains

Washington/Tokyo, Oct 2025 : US President Donald Trump and Japan’s Prime Minister Sanae Takaichi on Tuesday signed a framework agreement to strengthen cooperation on the mining, processing, and supply of critical minerals and rare earth elements, the White House announced.

The agreement, signed during President Trump’s visit to Japan as part of his broader Asia tour, aims to boost both nations’ efforts to build secure and resilient rare earth supply chains vital to industries such as renewable energy, electronics, and electric vehicles.

According to the White House statement, the US and Japan will coordinate the use of economic policy tools and strategic investments to develop diversified, transparent, and fair markets for critical minerals. The move comes amid growing global concern over China’s dominance in the sector.

China currently processes over 90 percent of the world’s rare earth elements and has recently expanded its export controls, adding new materials to its restricted list and tightening oversight of foreign companies dependent on Chinese supplies.

In contrast, the US has only one operational rare earth mine and is racing to secure alternative sources of minerals essential for electric vehicles, defense systems, and advanced manufacturing. During his visit, President Trump is also scheduled to meet Chinese President Xi Jinping on Thursday, where supply chain security is expected to feature in discussions.

As part of the new framework, Washington and Tokyo agreed to streamline and deregulate permitting procedures for exploration and extraction projects, while jointly addressing non-market practices and unfair trade barriers affecting the global minerals market.

The two countries also discussed the possibility of creating mutually complementary stockpiles of critical minerals and pledged to collaborate with like-minded international partners to enhance supply chain resilience and reduce dependency on China.

The White House said the agreement marks a “significant step forward” in ensuring stable access to materials crucial for clean energy and technological innovation, reinforcing the US-Japan alliance in the economic and strategic domains.