Japan floats rare earth cooperation with U.S.: report

Japan is looking to bolster its economic ties with the United States by establishing a partnership around critical minerals such as rare earths, local media reported.

Japanese Prime Minister Shigeru Ishiba presented the proposal in a phone call with U.S. President Donald Trump on Thursday as part of negotiating a lower U.S. trade deficit with Japan, according to the country’s largest newspaper by circulation, The Yomiuri Shimbun, 

The discussion included greater cooperation in economic security such as collaborations in rare earths, the paper reported. 

Rare earth minerals have taken centre stage in America’s trade tussle with China, which weaponized its strong position in the supply chain by restricting exports to the U.S. The Asian giant controls more than 60% of the world’s mine production and almost all of the processing. The U.S. relies on imports of rare earths — a group of 17 elements used in a wide range of high-tech applications — and has them on its list of critical minerals.

Between 2019 and 2022, about 72% of the U.S. rare earth imports came from China, according to the U.S. Geological Survey. Japan also accounted for 6% of the imports, though its rare earth metals were derived from mineral concentrates produced in China.

Tech support

The Japanese government is considering providing technical support for the processing and refining of these minerals, according to sources cited by Yomiuri Shimbun. Another idea that has been floated is to process the minerals in a third country that has the expertise but at lower costs

Also part of Ishiba’s proposed cooperative measures are semiconductors and shipbuilding, the newspaper said, with sources indicating that they, too, could be powerful bargaining chips in negotiations.

Japan currently has more semiconductor manufacturing plants than any other nation. Meanwhile the U.S., which has the second most, has been looking to redomicile some of the production so its exports will grow.

In shipbuilding, China also holds a dominant position in the global market with a 70% share. To mitigate Beijing’s influence, Tokyo’s proposal would involve the joint construction of next-generation ships, the Yomiuri Shimbun said.