The United States and Japan have signed a framework agreement to deepen cooperation on critical minerals, marking a significant step in Washington’s effort to reduce dependence on China for key industrial supplies, Bloomberg reported.

The accord was signed in Tokyo by Japanese Prime Minister Sanae Takaichi and US President Donald Trump during his Asia tour, which has been marked by a series of trade initiatives aimed at strengthening regional economic ties. The agreement commits both countries to jointly secure access to raw and processed materials — including rare earths — vital for domestic industries such as manufacturing, batteries, and clean energy.

Under the new framework, Washington and Tokyo will coordinate financial assistance, trade measures, and commodity stockpiling to stabilise supplies of critical materials. The document identifies magnets, batteries, catalysts, and optical materials as priority sectors for investment and cooperation.

The minerals deal forms part of a broader diplomatic push. Trump arrived in Southeast Asia wielding what the White House described as “historic” trade deals. In Kuala Lumpur on Sunday, he announced trade agreements with Malaysia and Cambodia, alongside framework deals with Thailand and Vietnam. The pacts promise the removal of several tariff and non-tariff barriers on US exports and commitments by those countries to increase purchases of American goods.

The partnership with Japan adds a strategic layer to the US-led campaign to diversify global supply chains away from China. Tensions over access to rare earths have intensified since Beijing imposed export controls on the materials in early April.

According to the agreement, the two governments aim to “achieve resilience and security of critical minerals and rare earths supply chains, including mining, separation, and processing.” Within six months, both nations intend to identify and finance selected projects to deliver end products for buyers in the United States, Japan, and allied economies.