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Japan’s Takaichi to Forge Closer Cooperation With Australia in Rare Earths

In an era defined by geopolitical fragmentation, the Australia-Japan partnership shows how middle powers can cooperate to mitigate risk and enhance resilience. 

The upcoming visit of Japan’s Prime Minister Takaichi Sanae to Australia, scheduled for early May, marks a significant moment in the evolution of strategic ties between Japan and Australia, especially in the domain of rare earth cooperation. At a time of geopolitical tensions, where resource security, energy flows, and strategic competition are intertwined, this visit centers on rare earths. It is equally shaped by the ongoing Iran crisis and the instability in the Strait of Hormuz. The visit broadly reflects a shift toward resource diplomacy, strategic alignment, and resilience-building in the Indo-Pacific. 

Rare earth elements are essential for advanced technologies ranging from electric vehicles to defense systems and have become central to contemporary geopolitical competition. For decades, China has dominated the production as well as the processing of rare earth elements, which created a dependency for economies like Japan. Recent disruptions between China and Japan, including export controls and broader strategic rivalry, have reinforced Tokyo’s bid to pursue supply chain diversification strategies.

It is in this context that Australia emerges as a natural partner, with its vast mineral resources and a well-developed mining sector. Australian companies like Lynas play a crucial role in supplying rare earths to global markets. Japan has invested heavily in Australian projects, signaling a long-term commitment to secure stable and reliable supply lines. Takaichi’s upcoming visit must be understood as a part of a deliberate strategy to embed economic security within foreign policy. Through deepening cooperation with Australia, Japan seeks to reduce its vulnerability to external shocks and contribute to the rules-based supply networks. 

Japan and Australia have transformed their relationship over time into a “quasi-alliance,” underpinned by shared democratic values, mutual economic interests, and common threat perceptions. The rare earth agenda adds a new dimension to this partnership. The discussions during Takaichi’s visit will focus on strengthening the supply chains for rare earth elements and further expanding cooperation in critical minerals. This builds on the already existing frameworks of cooperation and complements initiatives like Australia’s Critical Minerals Strategy and Japan’s economic security policies. 

The ongoing conflict in the Middle East and the Iran crisis have accelerated Japan’s push to deepen its energy cooperation with Australia. Australia is one of the largest and most reliable suppliers of liquified natural gas (LNG), which plays a vital role in Tokyo’s diversification strategy. Australia provides around 40-42 percent of Japan’s LNG imports, making it Tokyo’s single largest supplier with stable supply chains. Japan has already urged Australia to increase its LNG output to compensate for supply shortfalls. The energy partnership between Japan and Australia, therefore, complements their cooperation in rare earths, which creates a dual framework of energy and resource security. The cooperation is institutionalized through joint investments and policy coordination aimed at ensuring resilience in energy and mineral supply chains. 

The visit........

© The Diplomat