U.S. and Japan Sign Rare Earths Supply Deal

U.S. President Donald Trump and Japanese Prime Minister Sanae Takaichi unveiled the deal at Akasaka Palace on October 28. It sets a six-month timeline to identify joint projects and create stockpiles. The signing precedes Trump’s planned meeting with China’s Xi Jinping in Seoul. For Takaichi, Japan’s first female leader, the summit underscored her goal to raise defense spending to 2 percent of GDP.

Framework Targets Supply Chain Resilience

The pact directs both countries to “jointly identify” priority projects in magnets, batteries, catalysts, and optical materials. It also calls for new financing tools to “mobilize investment” and diversify production. Officials did not name China, but the deal follows Beijing’s new export restrictions. China still processes over 90 percent of global rare earths, dominating the market.

Investment and Energy Dimensions

Japan will channel about $550 billion in U.S. investments across shipbuilding, energy, and technology. The move complements Tokyo’s wider strategy to secure supply chains. Energy cooperation also expanded. Utility giant JERA agreed to import 5.5 million tons of U.S. LNG annually for 20 years starting around 2030, replacing Sakhalin-2 supplies that end by 2028–2033.

Security and Strategic Optics

Trump and Takaichi will visit the USS George Washington at Yokosuka naval base before the U.S. leader travels to Seoul. The White House called the pact part of “economic security” efforts. Takaichi invoked Shinzo Abe’s Indo-Pacific vision. Trump praised Japan’s “great female leader,” adding that the partnership marks “a new golden age” for the alliance.