CaliToday (29/10/2025): In a direct challenge to Beijing, President Trump and Prime Minister Takaichi commit to joint investment and refining to secure the "white gold" of the high-tech economy.
TOKYO — President Trump and Japanese Prime Minister Sanae Takaichi have signed a landmark agreement on rare earth minerals, firing the starting gun on a coordinated effort to build a high-tech supply chain independent of China.
The deal, finalized during a strategic dialogue in Tokyo, aims to directly counter Beijing’s near-monopoly on the 17 metals essential for modern technology. These materials are the lifeblood of the 21st-century economy, forming the critical components for everything from electric vehicles and semiconductors to Javelin missiles, wind turbines, and F-35 fighter jets.
A Direct Challenge to Beijing's Weaponized Monopoly
This partnership represents a key geopolitical move against China’s dominance in the global minerals market. Beijing currently controls over 70% of global rare earth production and, more critically, an estimated 90% of the refining and processing market.
This dominance has given China a powerful economic weapon. The vulnerability is not theoretical. In 2010, Beijing famously halted rare earth exports to Japan during a diplomatic dispute, a move that sent shockwaves through Japanese industry and served as a global wake-up call. The new pact is a direct response to that strategic vulnerability.
A "Three-Pronged" Strategy for Independence
The new agreement outlines a "three-pronged" strategy to build a secure, transparent, and resilient supply chain, effectively designing a future free from Chinese economic coercion:
Joint Investment Abroad: The U.S. and Japan will jointly create a multi-billion dollar fund to invest in new rare earth extraction and refining projects in "friendly third nations." The pact specifically identifies high-potential sites in Australia, Vietnam, and key partners across Africa as primary targets for development.
Boosting Domestic Refining: Washington has committed significant financial and technological support to help Tokyo rapidly expand its own domestic refining capabilities. This will be facilitated through the U.S.–Japan Critical Minerals Partnership, a framework designed to ensure that even if the raw ore is mined elsewhere, it can be processed into high-purity metals without ever touching Chinese facilities.
Future-Proofing Technology: The agreement also establishes a joint R&D framework. This initiative will focus on two key areas: developing efficient methods to recycle rare earths from existing electronics and defense hardware, and researching next-generation substitutes to "design out" the dependency in the long term.
The New Era of Tech-Resource Diplomacy
The timing of the deal is critical. With global demand for rare earths projected to surge by 40% by 2030 driven relentlessly by the EV and renewable energy boom—the race to secure these minerals has become a matter of non-negotiable economic and national security.
For both President Trump and Prime Minister Takaichi, the agreement is more than just trade policy; it's a powerful message of alliance and resilience.
As the world transitions toward a cleaner and smarter technological future, this pact signals that the U.S. and Japan are determined to control their own destiny by securing the very resources that will power it. It marks the beginning of a new era in tech-resource diplomacy, where access to raw materials is the ultimate strategic prize.
Thế Anh
CaliToday.Net