The United States (US) and Japan have launched a new partnership to strengthen control over the materials that power the modern economy. The deal focuses on securing supplies of critical minerals and rare earths used in electric vehicles, wind turbines, semiconductors, and military technology.

For years, both nations have depended heavily on China, which dominates global mining and processing of these materials. The new agreement aims to change that by building a trusted supply network that reduces strategic risk. According to the White House, the framework is designed for the: “development of diversified, liquid, and fair markets for critical minerals and rare earths.”

Under the agreement, Washington and Tokyo will co-ordinate investments in mining, refining, and recycling to ensure reliable access to key minerals such as lithium, cobalt, and nickel. They will work with private companies to fund new projects, speed up permitting, and create transparent rules to prevent market manipulation or price distortion.

The two governments also plan to hold a high-level ministerial meeting within six months to select specific projects for financing. These may include joint ventures in third countries with partners who share their commitment to open markets and environmental standards.

Recycling is another pillar of the plan. Both nations intend to recover valuable materials from used batteries and electronics to reduce waste and dependence on imported ore. Stockpiling reserves of critical minerals will also be expanded to cushion against future supply shocks.

Japan’s Prime Minister Sanae Takaichi described the agreement as part of a: “new golden age” for the US–Japan relationship, underscoring its strategic importance. For the US, it forms part of a wider push to rebuild manufacturing supply chains at home and among allies.