Japan Proposes Rare Earth Partnership with U.S. Amid Trade Negotiation Efforts

Published: Jun 2, 2025 22:12

Save

[Japan Proposes Rare Earth Partnership with U.S. as Trade Negotiation Leverage]
Japanese Prime Minister Shigeru Ishiba has proposed strengthening cooperation with the United States in critical minerals, particularly rare earths, during a recent call with U.S. President Donald Trump. The move is seen as part of broader negotiations aimed at reducing the U.S. trade deficit with Japan.

Rare earths, which have become a flashpoint in U.S.-China trade tensions, are considered strategic resources due to China’s dominance—over 60% of global rare earth mine production and near-total control over processing. Between 2019 and 2022, China accounted for 72% of U.S. rare earth imports, while Japan supplied 6%, mostly processed from Chinese concentrates.

According to The Yomiuri Shimbun, Japan is considering offering technical support to the U.S. for rare earth processing and refining. One option includes establishing processing operations in third countries with lower costs but relevant expertise.

Beyond rare earths, Japan also proposed cooperation in semiconductors and shipbuilding—key strategic industries. Japan currently hosts the most semiconductor fabs worldwide, while the U.S. is seeking to reshore production to boost exports. In shipbuilding, where China commands a 70% global share, Japan suggested jointly developing next-generation vessels to counter Beijing’s dominance.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

Apr 3, 2026 11:44

Pr-Nd Oxide and Alloy Prices Surge Amid Multiple Factors

[SMM Rare Earth Flash] Affected by multiple factors, Pr-Nd oxide prices and Pr-Nd alloy prices surged sharply today. Pr-Nd oxide closed at 750,000-755,000 yuan, up 27,500 yuan/mt from the previous day, while Pr-Nd alloy closed at 900,000-920,000 yuan/mt, up 22,500 yuan/mt from the previous day. As of now, SMM had not learned of any transactions concluded at these prices and would continue to follow up on frontline market conditions.

Apr 3, 2026 11:44

Apr 2, 2026 18:08

Rare Earth Prices Surge: Neodymium Praseodymium Oxide and Gadolinium Iron See Increased Transactions

[SMM Rare Earth Price Flash] As of now, driven by the rise in futures prices, neodymium praseodymium oxide has seen small-volume transactions by some traders at 730,000-740,000 yuan/mt. Driven by rising raw material prices, coupled with tender procurement of Pr-Nd alloy by major magnetic material plants, metal quotations were also raised to 900,000 yuan/mt, with actual transactions following up. The latest market quotation for gadolinium oxide was 230,000 yuan/mt, and quotations for gadolinium iron were also raised to 215,000-220,000 yuan/mt, driven by downstream tender procurement.

Apr 2, 2026 18:08

Apr 2, 2026 16:11

Rare Earth Prices Hold Up Well, and Market Inquiry Activity Increases [SMM Rare Earth Weekly Review]

[SMM Rare Earth Weekly Review: Rare Earth Prices Hold Up Well, and Market Inquiry Activity Increases] The Pr-Nd oxide market as a whole continued to hold up well. Under the impact of expectations of tighter supply and pronounced fluctuations in futures prices, upstream suppliers kept raising their offers, while low-priced cargoes tightened rapidly, pushing Pr-Nd oxide prices up to 722,000-728,000 yuan/mt.

Apr 2, 2026 16:11