Home World Trump, Takaichi agree on rare earth, critical minerals supply cooperation

Trump, Takaichi agree on rare earth, critical minerals supply cooperation

by Tanushree Prasad
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Tokyo, October 28: U.S. President Donald Trump and Japan’s new Prime Minister Sanae Takaichi on Tuesday signed a framework agreement to secure the supply of rare earths and other critical minerals, as both nations seek to reduce their dependence on China for essential resources used in energy, electronics and defense industries.

The deal, signed during Trump’s visit to Tokyo as part of his Asia tour, aims to strengthen supply chains and promote joint investment in mining and processing. The two sides agreed to use coordinated economic policy tools to develop diversified, transparent, and fair markets for critical minerals, the White House said in a statement.

As part of the framework, both countries pledged to streamline and deregulate permitting processes, address non-market practices, and explore joint stockpiling of key resources. The agreement also includes a package of U.S. investments in a $550-billion plan covering shipbuilding, and increased Japanese purchases of U.S. soybeans, gas, and pickup trucks.

China currently processes more than 90% of the world’s rare earths and has recently expanded export curbs, heightening supply concerns for countries dependent on these materials. The United States, with just one operational rare earth mine, has accelerated efforts to secure supplies critical for electric vehicles, semiconductors, and defense systems.

Trump praised Takaichi during a meeting at Tokyo’s Akasaka Palace, calling Japan “an ally at the strongest level.” The two leaders discussed regional stability and shared memories of late Prime Minister Shinzo Abe, a close friend of both.

“He was a great friend of mine and a great friend of yours,” Trump said as they met in the ornate palace where he last held talks with Abe in 2019. Takaichi is expected to present Trump with one of Abe’s golf clubs in a symbolic gesture of continuity in U.S.–Japan ties, a source familiar with the plan said.

Takaichi, Japan’s first female prime minister, has seen a rise in public support since taking office but her coalition remains two votes short of a parliamentary majority. A stronger partnership with Washington is expected to reinforce her standing at home.

Later on Tuesday, Trump and Takaichi will visit the U.S. naval base in Yokosuka, home to the aircraft carrier USS George Washington, before the president departs for South Korea. There, Trump is scheduled to meet Chinese President Xi Jinping in an effort to advance talks toward a trade war truce between the world’s two largest economies.

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