Tokyo: The agreement was formalized by US President Donald Trump and Japanese Prime Minister Sanae Takaichi in the Japanese capital. It aims to ensure a steady supply of rare earth elements and related materials crucial for industries such as electric vehicles, renewable energy, and advanced weaponry.

According to a White House statement, both countries will collaborate to “identify projects of mutual interest to address gaps in the supply chains of critical minerals and rare earth elements, including derivative products such as permanent magnets, batteries, catalysts, and optical materials.” The initiative will draw funding from both public and private sectors in the US and Japan.

This development follows China’s recent decision to tighten restrictions on the export of technologies linked to rare earths, a move that has drawn strong criticism from Washington, Tokyo, and European capitals. China currently dominates the global supply of these essential materials, which are indispensable to manufacturing electric cars, solar panels, smartphones, and missiles.