Input Stories

The U.S. and Japan will expand their cooperation, boost energy production and source non-Chinese points of supply for rare earths and critical minerals (Reuters, subscription). 

What’s going on: The announcement, made by the two countries late last week as Japanese Prime Minister Sanae Takaichi visited the White House, “include[s] Japanese investment of up to $73 billion … and an action plan” to source alternatives for critical materials, as well as a memorandum of understanding on plans to “accelerate deep-sea mineral resource development.”
 
Nuclear and natural gas: The governments will support several energy-boosting endeavors in the U.S., they said. These include:  

• The building of small modular reactors by GE Vernova Hitachi in Tennessee and Alabama, estimated to cost about $40 billion; and
• The construction of natural gas generation plants in Pennsylvania and Texas, at price tags of up to $17 billion and $16 billion, respectively.

Minerals action plan: The plan to develop new sources for critical minerals and rare earths, similar to the U.S.–Mexico Action Plan released in February, commits to “discuss[ing] coordinated trade policies such as a border-adjusted price floor mechanism” for an unspecified list of minerals.

• However, a fact sheet from the summit between the two leaders highlighted 13 mineral projects “including ventures dealing with rare-earth recycling, nickel, gallium, lithium and fluorite.”

On deep-sea mining: The U.S. and Japan also shared an MOU to establish a working group to speed up deep-sea resource development. 

• “[T]his would ​involve sharing information on deep-sea science and seabed mineral resource projects, including presentations on Japan’s rare-earth muds project near Minamitorishima ​Island and polymetallic nodules project, to explore potential cooperation.”