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

[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.