According to a Global Times report citing Nikkei Asia, Japan plans to propose a comprehensive cooperation package with the U.S. during the fifth round of tariff negotiations, focusing on addressing disruptions to Chinese rare earth and U.S. liquefied natural gas (LNG) supply chains amid U.S.-China tensions. Japan aims to collaborate with the U.S. on this front.
The report highlights Japan’s strengths in rare earth processing, recycling, and usage reduction. One proposal includes offering these technologies to the U.S. and assisting with the utilization of globally mined rare earths.
Known as the “lifeblood of modern industry,” rare earths are a group of 17 metal elements, including lanthanides, scandium, and yttrium. In industry, they act as a “vitamin,” enhancing steel’s wear and corrosion resistance for applications like aircraft carrier deck steel and high-end bearing steel. Rare earth permanent magnets, such as neodymium-iron-boron (NdFeB), are core components in electric vehicle motors and wind turbine generators, driving green energy development. Rare earth phosphors enable energy-efficient LED lighting and vibrant TV screen colors. In the military, rare earths are “strategic elements,” widely used in stealth fighter coatings to absorb radar waves. They also play key roles in petroleum catalysis, medical MRI imaging, and laser technology.
Japan is exploring similar cooperation in graphite and gallium. Expanding imports of U.S. LNG is under consideration, with proposals to support new projects in Alaska and increased production in Louisiana and Texas. Japan also plans to purchase billions of dollars’ worth of semiconductors from U.S. companies like NVIDIA, and, given the U.S.’s push for domestic chip manufacturing, Japan may assist in producing wafer materials. In shipbuilding, Japan is considering joint icebreaker construction with the U.S., factoring in China.
According to CTIA GROUP LTD, China holds the world’s largest rare earth reserves and production. U.S. Geological Survey data shows global rare earth reserves at approximately 90 million tons by the end of 2024, down 18.18% year-over-year, with China leading at 44 million tons, or 48.89% of the total. Global rare earth production reached 390,000 tons in 2024, up 3.72%, with China contributing 270,000 tons, or 69.23%. China’s rare earth resources follow a “north light, south heavy” distribution, concentrated in Inner Mongolia, Jiangxi, Guangdong, and Sichuan, with the Bayan Obo mine in northern Baotou, Inner Mongolia, holding 37.8% of global rare earth oxide reserves as of 2020.
To safeguard national security and fulfill international non-proliferation obligations, on April 4, 2025, the Ministry of Commerce, in coordination with the General Administration of Customs, announced export controls on seven medium and heavy rare earth items—samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium—effective immediately.
