TOKYO – In a significant geopolitical and economic development today, Tuesday, October 28, 2025, United States President Donald Trump and Japan’s newly elected Prime Minister, Sanae Takaichi, formally signed a comprehensive framework agreement focused on securing the supply of critical minerals and rare earths. The pact, sealed during President Trump’s ongoing Asia tour, underscores a concerted effort by the two key allies to build resilient supply chains, directly challenging the current global landscape dominated heavily by China.
The agreement marks a crucial early diplomatic success for Prime Minister Takaichi, who assumed office recently and faces the immediate task of bolstering her coalition government's standing while navigating complex international relations.
Targeting Supply Chain Vulnerabilities
The core of the US-Japan accord centers on enhanced cooperation in the mining and processing of rare earths and other critical minerals—resources essential for modern high-tech industries, ranging from renewable energy infrastructure and advanced electronics to sophisticated defense systems.
The White House stated that the two nations plan to utilize coordinated investment and various economic policy tools to accelerate the development of diversified, liquid, and fair markets for these essential materials.
This strategic move comes against a backdrop of increasing geopolitical tension surrounding resource control. China currently processes more than 90% of the world’s rare earths and has recently tightened its grip through expanded export curbs and heightened oversight on foreign producers reliant on Chinese materials.
Conversely, the United States has been racing to establish domestic and allied sourcing, operating with only one operational rare earth mine.
Deregulation and Stockpiling Pledges
A key component of the bilateral understanding involves mutual commitments to streamline and deregulate the often protracted permitting timelines and processes associated with critical minerals projects.
Furthermore, both Tokyo and Washington agreed to consider establishing a mutually complementary stockpiling arrangement. This measure is designed to act as a buffer against potential supply shocks and to ensure continuity of supply in the face of geopolitical instability or trade disputes.
The statement from the White House indicated that the cooperation would extend to working with other international partners to ensure overall supply chain security, signaling a broader coalition-building effort in the resource sector.
Broader Diplomatic Context
This mineral security pact is interwoven with the broader diplomatic itinerary of President Trump’s Asia trip. The visit to Japan, which included a meeting with Emperor Naruhito, precedes a highly anticipated meeting between President Trump and Chinese President Xi Jinping scheduled for later this week in South Korea, where the leaders are expected to discuss trade relations.
For Prime Minister Takaichi, the engagement with the US President is her first major diplomatic test, providing an opportunity to solidify her international standing while addressing domestic political needs, as her coalition government is reportedly short of a clear majority in the lower house of parliament.
The focus on critical minerals is also seen as a response to global economic shifts, echoing themes discussed at recent international forums where leaders have emphasized addressing energy security and building resilient economic structures.
The agreement signals a clear strategic alignment between the world’s two largest economies, aiming to mitigate reliance on a single dominant supplier and foster technological independence. The development is expected to have reverberations across global markets, particularly in sectors reliant on these specialized materials.
As the US and Japan move to solidify their resource partnerships, the international focus remains keenly set on the upcoming US-China summit, where the trajectory of global trade and technological competition may be further defined.