Source- Fox business.com

United States and Japan Forge New Agreement to Secure Critical Minerals and Rare Earths

The US and Japan have signed a historic deal to work together more closely to make sure they have enough critical minerals and rare earth elements, which are necessary for advanced technologies, defense systems, and the growth of renewable energy. The deal was finalized while former U.S. President Donald Trump was in Tokyo. Both countries promised to work together to make their supply chains stronger and more varied, without relying on China.

The White House said in a statement that the new framework's goal is to make the "resilience and security of critical minerals and rare earths supply chains" between the two countries better. The goal of the partnership is to make sure that important materials like lithium, cobalt, and rare earth metals can always be found. These materials are important for electric cars, smartphones, semiconductors, and military equipment.

The announcement comes just after the US signed similar agreements with Malaysia and Thailand. This shows that the US is working on a bigger Indo-Pacific strategy to find other sources of rare earth materials. This move shows that Washington wants to depend less on China, which now controls about 70% of the world's production and processing of these resources.

Japanese Prime Minister Sanae Takaichi, the country's first female leader, called the deal a "milestone" in relations between the two countries during the ceremonial signing at Tokyo's Akasaka Palace. She called the deal "the foundation of a new golden era" between the two countries and stressed Japan's dedication to helping the world move to cleaner energy sources by managing resources in a safe and sustainable way.

President Trump agreed with her and said that the partnership was "the greatest alliance in the world." He also praised Takaichi's leadership. He said, "Japan is a great partner, and we will always be there to help Japan." This showed how much they both wanted to work together on economic and strategic issues.

Analysts say that the deal is a good way to deal with the rising tensions in the world over who controls resources. As countries move faster toward green technologies and digital infrastructure, the demand for rare earth elements around the world has skyrocketed. China's market dominance and export restrictions have made supply chains in the US and Japan less secure.

The two governments will work together on joint research, sustainable mining methods, and recycling technologies that can get rare earth materials from old electronics. The deal also encourages private companies to work together and put money into refining and processing plants outside of China. The goal is to create a supply chain network that is open and good for the environment.

Also Read :- Business Minds Media Magazine