Japan and the United States have agreed to cooperate on next-generation nuclear power reactors and rare earths, as Tokyo seeks to re-enter the nuclear technology export market and both seek to reduce China's dominance of key electronic components.

US President Donald Trump and Japanese Prime Minister Sanae Takaichi signed a framework agreement on Tuesday to secure supplies of rare earths, used in everything from cars to fighter jets.

They signed the documents, covering critical minerals, at Tokyo's neo-Baroque Akasaka Palace, beneath three ornate gold chandeliers, to thunderous applause from aides.

They did not directly mention China, which processes more than 90% of the world's rare earths, making it a source of concern for each country's mineral supply chain. Beijing recently expanded export restrictions.

Trump and Chinese President Xi Jinping are scheduled to meet on Thursday on the sidelines of the Asia-Pacific Economic Cooperation in South Korea to discuss a deal that would halt higher US tariffs and controls on Chinese rare earth exports.

Japan and the United States will use coordinated economic and investment policy tools to accelerate "the development of diversified, liquid, and equitable markets for critical minerals and rare earths," the White House said in a statement.

They aim to provide financial support to selected projects within the next six months, it added. The two countries will consider complementary stockpiling arrangements and work with international partners to ensure supply chain security, it said.

While China dominates global rare earth extraction, the United States and Myanmar account for 12% and 8%, respectively, according to Eurasia Group, while Malaysia and Vietnam account for processing—where China is also a top player—at 4% and 1%, respectively. (alg)

Source: Reuters