Trump seals rare earth mineral deal with Japan
Donald Trump and Japan’s prime minister Sanae Takaichi signed a framework agreement for “securing” supplies of critical minerals and rare earths on Tuesday.
Japan's new prime minister Sanae Takaichi and US president Donald Trump signed the deal in Tokyo, as part of Trump's wider tour of Asia.
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Both countries look to strengthen their rare earth supply chains and to escape reliance on China’s control of the precious resource.
Mr Trump praised Japan’s first female leader, as he welcomed the deals between the two countries on critical minerals and trade.
The US and Japan plan to cooperate through the use of economic policy tools and coordinated investment of critical minerals and rare earths, a White House statement said.
Rare earths are a specific category of critical minerals vital for defence, auto and electronic industries that have become a significant friction point in global diplomacy and trade.
All have unique properties that are largely irreplaceable or can only be substituted at huge costs.
China processes more than 90pc of the world’s rare earths and has recently expanded export curbs, including new elements on its control list, and tightened oversight of foreign producers that rely on Chinese materials.
The US has just one operational rare earth mine and is racing to secure minerals vital for electric vehicles, defence systems and advanced manufacturing.
Japan’s new prime minister is also expected to offer a package of US investments under a $550-billion deal that includes shipbuilding and increased purchases of US products such as natural gas and pickup trucks.
While they spoke in private, the White House said the Japanese leader would nominate Trump for the Nobel peace prize – an accolade Trump has coveted since his return to the White House.
Mr Trump will also meet business leaders in Tokyo and then head to South Korea on Wednesday. He then plans to meet Chinese President Xi Jinping on Thursday.
Despite concerns over Chinese dominance of rare earth minerals, the US president said he hopes to end the trade war between the world’s two biggest economies.