What's Happening?
The United States and Japan have announced a new framework aimed at securing the supply of critical minerals and rare earths essential for advanced technologies. This initiative involves leveraging economic
policy tools and coordinated investments to develop diversified and fair markets for these minerals. The framework includes measures to accelerate mining, separation, and processing of critical minerals, with a focus on enhancing supply chain resilience. A U.S.-Japan Critical Minerals Supply Security Rapid Response Group will be established to identify priority minerals and supply vulnerabilities. The framework also aims to streamline permitting processes and promote investment in mining and processing operations.
Why It's Important?
This framework is significant as it addresses the strategic need for the U.S. and Japan to reduce reliance on China, which currently dominates the rare earths market. By securing a stable supply of critical minerals, both countries aim to support their domestic industries, including technology and defense sectors. The initiative could lead to increased economic cooperation between the U.S. and Japan, potentially influencing global trade dynamics. Industries reliant on these minerals, such as electronics and automotive, stand to benefit from a more secure and diversified supply chain.
What's Next?
The U.S. and Japan plan to convene a bilateral Mining, Minerals, and Metals Investment Ministerial within 180 days to discuss investment priorities. The framework also includes plans for financial support to selected projects and the development of new mechanisms to mobilize private capital. Both countries will work with international partners to ensure supply chain security and advance high-standard marketplaces for critical minerals.
