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U.S. Signs New Asia Mineral Pacts in Bid to Loosen China’s Rare-Earth Hold

Washington is turning diplomacy into supply security by pairing regional agreements with direct defense financing.

Overview

  • Trump and Japanese Prime Minister Sanae Takaichi reached a preliminary rare-earths and critical minerals pact that outlines joint investments, reserve mapping, and mutual stockpiling.
  • The administration signed MOUs with Malaysia and Thailand to develop their critical mineral supply chains, with provisions that could give U.S. firms preferential access.
  • A separate U.S.–Australia deal commits $3 billion over six months to critical mineral projects, with the Pentagon backing an advanced gallium refinery in Western Australia, according to the White House.
  • At home, the Defense Department became the largest shareholder in MP Materials and the administration has signaled a price floor for the sector, alongside broader public‑private efforts.
  • Officials cite China’s control of most mining and nearly all refining and note U.S. dependence that exceeded 95% of rare earth imports in 2019–2022, underscoring the drive to diversify.