Japan, Australia sign critical minerals deal
The leaders of Japan and Australia agreed on Monday to step up their collaboration to ensure stable supplies of critical minerals, energy and other essentials, amid China’s rare earth dominance and the conflict in the Middle East.
Issuing five outcome documents at their meeting in Canberra, including a joint declaration on economic security, Japanese Prime Minister Sanae Takaichi and her Australian counterpart Anthony Albanese also affirmed that their countries will further promote cooperation on defense and cybersecurity.
Japan and Australia “share a firm commitment to contributing to peace and stability in the region and the international community” and are “the front-runners of collaboration among like-minded partners,” Takaichi told a joint press event after the talks, describing the countries’ ties as “a quasi-alliance.”
Albanese said the leaders agreed on a range of “ambitious outcomes that comprehensively elevate our special strategic partnership” and the two countries “have never been more strategically aligned.”
Under the joint declaration focused on building resilient supply chains for rare earths, energy resources and food products, among other items, they expressed their “strong concerns” over export restrictions on critical minerals, in an apparent reference to China’s recent tightening of export controls.
Rare earths are essential for products using cutting-edge technologies, such as electric vehicles and semiconductors. China is said to mine around 70 percent of the world’s rare earths and refine about 90 percent of them and Australia is also known as a major producer.
Reliance on China
Japan is highly reliant on China for its procurement of rare earths. Since earlier this year, Beijing has tightened its restrictions on exports of dual-use items, which can be used for both civilian and military purposes, with rare earths possibly included.
The measure was taken in an apparent response to Takaichi’s remarks in parliament in November that Japan could potentially deploy its Self-Defense Forces in support of the United States in the event of an attack on Taiwan, a self-ruled democratic island claimed by China.
The US-Israeli conflict with Iran since late February has disrupted global crude oil transportation and caused price hikes, posing challenges to countries heavily dependent on oil and petroleum product imports like Japan.
While Australia, known for its rich natural resources, is Japan’s largest liquefied natural gas supplier, it also greatly relies on petroleum product imports, such as gasoline and diesel, from Asian nations heavily dependent on Middle Eastern crude oil, following a series of Australian refinery closures over the decades.
Reciprocal access deal
Sharing concerns over China’s military activities in the Indo-Pacific region, Japan and Australia have been boosting security cooperation in recent years as their reciprocal access agreement, which enables faster troop deployment and facilitates joint drills, took effect in 2023.
Takaichi and Albanese welcomed their countries’ announcement last month regarding the conclusion of contracts to jointly deliver the first three of 11 ships for the Australian Navy based on the upgraded Mogami-class vessel, a Japanese multimission stealth frigate.
