- The United States and Japan have signed a landmark agreement to strengthen cooperation on rare earths and critical minerals , aiming to reduce reliance on China’s supply dominance . The deal was formalised in Tokyo during President Donald Trump’s visit , marking a major step toward building secure and diversified global supply chains.
Key Highlights
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The agreement was signed at Akasaka Palace between US and Japanese officials.
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Japan’s Prime Minister Sanae Takaichi called it the start of a “ new golden era ” in bilateral relations.
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The pact focuses on ensuring resilient and secure supply chains for critical minerals used in EVs, semiconductors, and defence systems .
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It follows similar US agreements with Malaysia, Thailand, and Australia under the Indo-Pacific strategy .
Context
- China currently controls about 70% of global rare earth mining and nearly 90% of refining capacity , giving it a major strategic advantage in the global market. Recent Chinese export controls have raised fears of supply disruptions, prompting the US and its allies to diversify sources.
Strategic Importance
- The partnership is expected to boost mineral processing, recycling, and advanced manufacturing capabilities outside Chinese influence. While experts note that building alternative supply chains may take years, the deal strengthens Washington’s leverage in global trade and technology security.
Exam-Oriented Facts
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Signed in: Tokyo, October 2025
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US President: Donald Trump
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Japan PM: Sanae Takaichi (Japan’s first female Prime Minister)
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Objective: Reduce dependence on China for rare earths and critical minerals
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China’s Share: 70% mining, 90% refining globally
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Part of: US Indo-Pacific rare earth diversification strategy
The agreement reinforces the US-Japan alliance as a cornerstone of Indo-Pacific security and economic cooperation, sending a clear signal of unity ahead of Trump’s expected meeting with Chinese President Xi Jinping .
Month: Current Affairs - October 28, 2025
Category: rare earths and critical minerals