US-Japan sign agreement for supplying critical minerals and rare earth materials

US President Donald Trump, currently on his tour to Asia, signed an agreement in Japan on Sunday, securing the supply of critical minerals and rare earth materials, ahead of his meeting with Chinese President Xi Jinping.

The deal was sealed at Tokyo’s Akasaka Palace, where Japan Prime Minister Sanae Takaichi hosted the US president.

“The United States of America and Japan intend to support the supply of raw and processed critical minerals and rare earths crucial to the domestic industries of the United States and Japan,” read the framework statement.

According to White House, the participants plan to accomplish the objective with economic policies and coordinated investments, with the help of securing supply chains, mining, separation, and processing of critical materials and rare earths “essential for the production of advanced technologies”.

Both countries will intensify their efforts to “accelerate the secure supply of critical minerals and rare earths necessary to support domestic industries, including advanced technologies and their respective industrial bases, by leveraging policy tools such as the United States’ and Japan’s financial support mechanisms, trade measures where appropriate, and critical minerals stockpiling systems”, according to the statement.

Within six months, the countries intend to take “measures to provide financial support to selected projects to generate end product for delivery to buyers in the United States and Japan and, as appropriate, like-minded countries.”

Trump’s Asia tour

Before this, Trump arrived in Kuala Lumpur on Saturday on the first leg of his Asia tour that will take him to Malaysia, South Korea, and Japan while a trade war rages. 

Trade and investment deals across the region are expected, but the most-watched event of the tour will be his meeting with China’s President Xi Jinping in South Korea after the two countries have raised their confrontation level, facing off over tariffs, rare earths, technology, and drugs.

Trump was confident about a deal, saying on Thursday, “I think we are going to come out very well and everyone’s going to be very happy.”

Their meeting on October 30 will take place on the sidelines of the 21-member forum, Asia-Pacific Economic Cooperation (APEC) in Gyeongju, a historic city of South Korea.

Indian Prime Minister Narendra Modi, who was invited, will participate virtually.