US, Japan leaders signal uncommon earths, nuclear energy deal forward of Trump-Xi assembly

[ad_1] China expands curbs on uncommon earths Uncommon earths, essential minerals are key digital parts Important for objects from vehicles to fighter jets Japanese firms could possibly be concerned in cooperation with U.S. on new-generation nuclear energy, factsheet reveals Japan's new PM Takaichi favors nuclear energy for vitality safety, expertise exports TOKYO, Oct 28 (Reuters) - Japan and america agreed to a deal on new-generation nuclear energy reactors and uncommon earths, as Tokyo seeks a means again to export markets for its nuclear expertise and each look to cut back China's dominance over key digital parts.

U.S. President Donald Trump and Japanese Prime Minister Sanae Takaichi signed a framework settlement on Tuesday for securing the availability of uncommon earths utilized in every part from vehicles to fighter jets. Enroll <a data-testid="Link" referrerpolicy="no-referrer-when-downgrade" href="https://www.reuters.com/world/asia-pacific/trump-takaichi-agree-rare-earth-critical-minerals-supply-2025-10-28/undefined?location=article-paragraph&redirectUrl=%2Fworld%2Fasia-pacific%2Ftrump-takaichi-agree-rare-earth-critical-minerals-supply-2025-10-28%2F" class="text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC">here.

They signed the paperwork, which included essential minerals, on the neo-Baroque-style Akasaka Palace in Tokyo, beneath three chandeliers swathed in gold ornamentation, as aides applauded. They made no direct public point out of China, which processes greater than 90% of the world's uncommon earths, making it the supply of every nation's concern about its mineral provide chain. Beijing has just lately expanded export curbs. Trump and Chinese language President Xi Jinping are set to meet on Thursday on the sidelines of the Asia-Pacific Financial Cooperation in South Korea to debate a deal that might pause steeper U.S. tariffs and Chinese language uncommon earths export controls. Japan and america would use financial coverage instruments and coordinated funding to hurry "growth of diversified, liquid, and truthful markets for essential minerals and uncommon earths", the White Home stated in an announcement.

They goal to supply monetary help to chose initiatives throughout the subsequent six months, it added.

Each nations would think about a mutually complementary stockpiling association and cooperate with worldwide companions to make sure provide chain safety, it stated.

Whereas China dominates world uncommon earth extraction, america and Myanmar management 12% and eight% respectively, says Eurasia Group, with Malaysia and Vietnam protecting processing - the place China can be the highest participant - of one other 4% and 1% every.

NUCLEAR POWER, OTHER AREAS In a factsheet for the talks, Japan talked about mutual curiosity to cooperate in building of latest technology AP1000 nuclear reactors and small modular reactors (SMRs).

These might contain Japanese firms comparable to Mitsubishi Heavy Industries, Toshiba Group and others, together with other cooperation areas , opens new tab . Nuclear energy, together with next-generation reactors, as a matter of a larger vitality safety, inexpensive energy provide and export expertise, is among the many <a data-testid="Link" referrerpolicy="no-referrer-when-downgrade" href="https://www.reuters.com/sustainability/boards-policy-regulation/nuclear-power-perovskite-solar-japans-domestic-energy-sources-are-important-pm-2025-10-24/" class="text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC">top priorities of Takaichi, who grew to become Japan's first feminine prime minister final week. Japan shut down all its reactors after the Fukushima Daiichi nuclear catastrophe, brought on by a strong 2011 earthquake and subsequent tsunami. China, France, South Korea and Russia, at present dominate world exports of nuclear energy expertise.

A separate White Home assertion <a data-testid="Link" target="_blank" referrerpolicy="no-referrer-when-downgrade" href="https://www.whitehouse.gov/articles/2025/10/u-s-japan-technology-prosperity-deal/" rel="noopener" class="text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76">also , opens new tab talked about as a possible space for cooperation fusion vitality, favoured by Takaichi. About 20 firms from Japan and america have proven curiosity in potential funding initiatives forming a part of a promised $550-billion funding bundle, the factsheet issued by each nations showed . Nevertheless it didn't point out further U.S. LNG offtake or upstream investments that Japanese firms have just lately been increasing. Earlier than Trump's Asia journey, the U.S. urged consumers of Russian vitality, including Japan, to stop imports, and put sanctions on Moscow's two greatest oil exporters, Rosneft (ROSN.MM) , opens new tab and Lukoil (LKOH.MM) , opens new tab , to push the Kremlin into talks to finish the Ukraine conflict. Japan has stepped up U.S. LNG purchases in the previous few years because it tries to diversify away from its key provider Australia and put together for the expiry of provide contracts with Russia's Sakhalin-2 LNG challenge, which Mitsui (8031.T) , opens new tab and Mitsubishi (8058.T) , opens new tab helped launch in 2009. In June, JERA, Japan's prime LNG purchaser, agreed to buy as much as 5.5 million metric tons a 12 months of U.S. LNG beneath 20-year contracts, with deliveries beginning round 2030. That is roughly the quantity Japan imports yearly from Sakhalin-2. Most provide from Sakhalin-2, which meets 9% of Japan's fuel wants, ends within the interval from 2028 to 2033.

Japan buys lower than 1% of its oil imports from Russia beneath a sanctions waiver as a consequence of expire in December, with the majority of its oil provide lined by the Center East.

Final week alone, Japan's greatest metropolis fuel provider, Tokyo Gasoline (9531.T) , opens new tab , signed a preliminary deal to purchase 1 million metric tons each year of LNG from the Alaska LNG challenge, following a similar September announcement by JERA. JERA pledged $1.5 billion for fuel belongings in Louisiana in its first foray into upstream manufacturing in america, the place Tokyo Gasoline and Mitsui are already current. To maintain electrical energy costs in verify, Japan desires to proceed Sakhalin-2 LNG imports, a senior official has <a data-testid="Link" referrerpolicy="no-referrer-when-downgrade" href="https://www.reuters.com/sustainability/boards-policy-regulation/replacing-lng-supplies-russias-sakhalin-2-would-be-costly-japan-says-2025-10-23/" class="text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC">said , because it takes just a few days to ship LNG to Japan in comparison with round every week from Alaska and roughly a month from the U.S. Gulf Coast. "The U.S. stated it desires Japan to cease importing Russian vitality - however that is Japan's closest LNG supply and can be low cost," stated Nobuo Tanaka, chief government of advisory Tanaka International, Inc.

"I feel the query needs to be framed this fashion: can the U.S. present Japan with LNG as low cost as what at present comes from Russia? Can fuel from Alaska be that inexpensive?"

Reporting by Katya Golubkova and Trevor Hunnicutt in Tokyo, extra reporting by Kanishka Singh and Rishabh Jaiswal; Modifying by Himani Sarkar and Stephen Coates