President Donald Trump and Japan Prime Minister Sanae Takaichi on Tuesday signed a framework agreement for securing the supply of critical minerals and rare earths through mining and processing, the White House said.
The agreement came after Trump’s meeting with Japan’s first female leader, as part of his wider trip to Asia. Both Washington and Tokyo are looking to strengthen their supply chains for rare earth elements, which are used everywhere, from renewable energy to electronics and cars.
According to the White House, Japan and the U.S. plan to coordinate investment and policy efforts to develop more diversified and transparent markets for critical minerals and rare earth elements.
Within six months, Washington and Tokyo plan to identify and fund new mining and processing projects for key materials like magnets and batteries. The agreement also creates a joint “Rapid Response Group” to spot and supply vulnerabilities and coordinate emergency deliveries of critical materials.
TRUMP THREATENS ‘MASSIVE’ CHINA TARIFFS, SEES ‘NO REASON’ TO MEET WITH XI
Under the agreement, Japan and the U.S. will streamline and expedite permitting processes for critical minerals and rare earths.
The agreement also commits both countries to address foreign trade distortions and unfair market practices.
The White House said Washington and Tokyo would explore a joint stockpiling arrangement and work with other partners to strengthen supply chain security.
TRUMP CALLS XI’S RARE EARTH MOVE A ‘BAD MOMENT’ — WHY IT MATTERS FOR US NATIONAL SECURITY, CHINA TIES
Both governments said they’ll coordinate with “like-minded partners,” language seen as a nod to Australia and the European Union, as they try to build a market alternative to China’s near-monopoly over rare earth processing.
China currently dominates the global rare earths market, processing more than 90% of these materials. Beijing recently ratcheted up export curbs, including new elements on its control list and tightened oversight of foreign producers that rely on China’s materials.
During Tuesday’s meeting with Trump, Japan’s new prime minister called for a “new golden age” in the U.S.-Japan alliance and announced Japan will gift 250 cherry trees to Washington next year to mark America’s 250th anniversary.
The U.S., meanwhile, has only one operational rare earth mine and is racing to secure vital minerals for electric vehicles, defense systems and advanced manufacturing.
CLICK HERE TO GET FOX BUSINESS ON THE GO
As part of his Asia trip, Trump is scheduled to meet with Chinese President Xi Jinping on Thursday.
Read the full article here
