Trump, Japan sign massive rare earth mineral deal as PM vows to invest $550 BILLION in US

The agreement states that the US and Japan "intend to support the supply of raw and processed critical minerals and rare earths crucial to the domestic industries of the United States and Japan." The countries "intend to capitalize on their respective existing mining and processing operations in critical minerals and heavy and light rare earths as well as new capacity."

The countries intend to invest in mining and processing through government and private sector support, streamlining the permitting processes, and the creation of the US-Japan Critical Minerals Supply Security Rapid Response Group, among other points.

The agreement comes after Trump met with Takaichi as the president is making a broader trip to Asia. According to the White House, the countries also signed a technology agreement that is meant to "strengthen collaboration towards joint opportunities of mutual interest in strategic science and technology disciplines" for the two countries.

The list of disciplines encompasses "driving innovative research to accelerate the application of AI for science, industry, and society through use-inspired initiatives supported by the U.S. National Science Foundation, Japan Science and Technology Agency, Japan Society for the Promotion of Science, RIKEN, and other relevant research institutions and funders," as well as "deepening cooperation to advance high-performance computing, leading-edge semiconductor technologies, and quantum computing that underpin the AI era.”

The deal will also have impacts on the securing of pharmaceutical as well as biotechnology supply chains. Investments in space research and development will also include “building capacity for human missions to the Moon and Mars," contributing to "civilian mission needs," and "the [US and Japan] intend to continue their strong partnership in civil space and on aeronautics, science, and human exploration. Areas of collaboration include the International Space Station, future Artemis lunar surface exploration missions, and supporting enhancement of commercial space.“

On Tuesday, Trump said that Japan is also set to invest $550 billion into the US as part of the deal. "The historic trade deal with the Prime Minister that is signed today, and private sector agreements that were signed moments ago, will be increasing our commerce very much further. Japan is going to be investing $550 billion into the United States, and it’s an amazing thing - and they’re happy, and they’re going to love it.

Trump touched on the ties between the US and Japan, saying that going forward he believes it will be "as strong as it can be."

Takaichi posted to X about the trade deal between the US and Japan, "My sincere appreciation to President Trump for his friendship. Japan, together with our ally, the U.S., is determined to do everything we can to contribute to peace and prosperity at the heart of the world."

The US ambassador to Japan, George Glass, commented, "Innovation and ingenuity are the drivers of tomorrow’s economy. Which is why the U.S. and Japan are combining our engineering prowess in such vital tech-focused fields as AI, quantum, fusion energy, and space."

The implications of the deal may impact the amount of leverage China has in making trade deals with the US, as a large supply of rare earth minerals are exported out of China. The country has over the last year taken steps to restrict rare earth trade with the US, impacting supply of those resources.