Japan’s PM seeks US partnership on rare earths to cut China dependence

Japanese Prime Minister Sanae Takaichi on Wednesday said she will prioritise cooperation with the United States on rare earth minerals development and economic security during her visit to Washington next month, as Tokyo accelerates efforts to reduce strategic dependence on China.

Speaking after her reappointment by Parliament, Takaichi said strengthening supply chains for critical minerals would be central to her talks with US President Donald Trump. Rare earth elements are essential for semiconductors, electric vehicles, renewable energy systems and advanced defence technologies, and their secure supply has become a strategic priority for Japan.

China currently dominates global rare earth processing, controlling over 80 per cent of refining capacity, giving Beijing significant leverage over international supply chains. Japan’s vulnerability was exposed in 2010, when China briefly restricted rare earth exports during a diplomatic dispute, prompting Tokyo to redefine access to these minerals as a national security issue.

Although Japan has limited onshore reserves, it possesses vast deep-sea rare earth deposits within its exclusive economic zone near Minamitorishima Island in the Pacific. Surveys indicate the seabed contains millions of tonnes of rare earth-rich mud, including neodymium, dysprosium, terbium and yttrium. However, deep-sea mining is technologically complex, costly and environmentally sensitive, and commercial-scale extraction is not expected before the early 2030 s. Japan is currently conducting pilot recovery projects and developing advanced underwater mining technologies.

Tokyo is pursuing a three-pronged strategy: diversifying imports, building domestic processing capacity and accelerating seabed mining research. It has secured supply partnerships with Australia, the United States, Vietnam, India and African producers, while investing heavily in refining and recycling technologies to reduce reliance on Chinese facilities.

Takaichi said cooperation with Washington would be crucial in expanding joint exploration, processing and technology-sharing initiatives. Japan has already committed USD 36 billion to the first phase of a USD 550 billion bilateral investment framework, aimed at strengthening resilient industrial and critical mineral supply chains.

Analysts say the rare earth push underscores Japan’s strategic recalibration amid intensifying US-China competition and rising geopolitical uncertainty.