US President Donald Trump and Japan PM Takaichi have signed an agreement, external to boost the supply and production of rare earths between the US and Japan.
The two countries agreed to cooperate through the use of policies, trade measures and coordinated investment to support the production of critical minerals. Washington has been racing to diversify its supply of critical minerals to reduce its reliance on China, which holds a near-monopoly in the processing of critical minerals and has recently imposed export controls on them.
In recent days, the US signed a flurry of deals with Malaysia, Thailand and Australia on rare earths, which are needed for the production of most electronics, electric cars and military equipment. Japan is known to have an abundant supply of rare earth minerals but much of it is underwater, making it difficult to mine.
What is in the ‘golden age’ agreement
Let’s bring you a few more details on the “new golden age” deal that the US and Japan have just signed. The agreement refers to previous deals the long-standing allies inked earlier this year which were about strategic investments and shared national interests.
Today’s paperwork says that the two leaders “noted with satisfaction swift and continued efforts by both countries, and confirmed their strong commitment to implementing this GREAT DEAL”.
The agreement will help both countries to “strengthen economic security, promote economic growth, and thereby continuously lead to global prosperity”.
It also says that Trump and Takaichi have spoken to the relevant ministers and secretaries to “take further steps for a NEW GOLDEN AGE of the ever-growing US-Japan alliance”.