U.S., Japan Sign Critical Minerals Framework; No Immediate Funding

President Donald Trump and Japan’s prime minister Sanae Takaichi signed a framework in Tokyo to cooperate on rare earths and critical minerals aimed at reducing reliance on China’s dominant processing capacity. The agreement targets mining, refining, recycling, stockpiling and downstream processing (magnets, batteries, catalysts) and envisions using private capital, grants, offtake deals and possible government equity stakes to develop projects. Japanese firms have signaled up to $400 billion in potential investment, but officials said there were no immediate direct government financial commitments and no new bilateral trade deals were announced. The pact establishes a rapid‑response team to accelerate production and leaders also flagged cooperation on nuclear power, with reports tying an about $80 billion strategic nuclear partnership to AI and energy needs. The framework is part of Trump’s Asia tour and broader efforts to diversify supply chains away from China, which processes more than 90% of rare earths. Key details remain unresolved, including stockpiling arrangements, the fate of previously cited large investment pledges and how quickly projects will move from framework to execution.