U.S. President Donald Trump and Japanese Prime Minister Sanae Takaichi have signed a framework agreement aimed at securing the supply of critical minerals and rare earth elements. The agreement was finalized during Trump's visit to Japan, part of his broader trip across Asia. This partnership seeks to enhance the rare earth supply chains essential for various industries, including renewable energy, electronics, and automotive manufacturing.

The agreement follows a similar deal between the U.S. and Australia, which focuses on achieving "critical mineral and energy dominance" and is expected to invest billions into mining projects in both countries. According to a White House statement, the U.S. and Japan plan to collaborate using economic policy tools and coordinated investments to develop diversified and fair markets for these vital resources.

China currently dominates the rare earth market, processing over 90% of the world's supply. Recently, it has implemented export restrictions and increased oversight of foreign producers reliant on Chinese materials. In contrast, the U.S. has only one operational rare earth mine and is working to secure minerals crucial for electric vehicles, defense systems, and advanced manufacturing.

As part of the agreement, the U.S. and Japan will streamline permitting processes for critical minerals and address non-market policies and unfair trade practices. They will also explore a complementary stockpiling arrangement and collaborate with international partners to ensure supply chain security.

During the meeting, Trump praised Takaichi, Japan's first female prime minister, for her commitment to military expansion and trade agreements. Takaichi, a close ally of the late Prime Minister Shinzo Abe, expressed her intention to nominate Trump for the Nobel Peace Prize, according to White House spokeswoman Karoline Leavitt.

Takaichi is expected to propose a package of U.S. investments under a $550 billion deal, which includes shipbuilding and increased purchases of U.S. goods such as soybeans and natural gas. This may help mitigate any demands from Trump for Japan to increase defense spending amid rising tensions with China. Takaichi has already pledged to raise defense spending to 2% of Japan's GDP.

Trump and Takaichi posed for photographs at the Akasaka Palace in Tokyo, where Trump remarked on the strength of their handshake and expressed confidence in Takaichi's leadership. He congratulated her on being the first woman to hold the prime ministerial position in Japan, calling it a significant achievement.

Takaichi presented Trump with gifts, including a golf putter belonging to Abe and a signed golf bag from Japanese golfer Hideki Matsuyama. Experts suggest that Takaichi's approach will be cautious as she seeks to establish her foreign policy credentials. Dr. Lai-Ha Chan from the University of Technology Sydney noted that Takaichi's strategy would likely involve a "charm offensive" to gain Trump's favor and secure beneficial agreements for Japan.

Trump's visit included a meeting with Japanese Emperor Naruhito and a planned visit to the U.S. naval base in Yokosuka, which hosts the aircraft carrier USS George Washington. Following his time in Japan, Trump is scheduled to travel to South Korea for discussions with Chinese President Xi Jinping, where he hopes to negotiate a truce in the ongoing trade war between the two nations.