Canberra, May 4 — Japan and Australia agreed Monday to deepen cooperation to secure steady supplies of energy and critical minerals, aiming to reduce vulnerabilities created by China’s market dominance and instability in the Middle East.
Japanese Prime Minister Sanae Takaichi and Australian Prime Minister Anthony Albanese met in Canberra and signed five outcome documents, including a joint declaration on economic security. The leaders said they will build more resilient supply chains for energy, food and rare earths—materials essential to semiconductors, electric vehicles and other advanced technologies.
The move reflects pressing geopolitical concerns: China accounts for roughly 70% of global rare-earth production and nearly 90% of refining capacity, leaving other countries exposed. Despite Australia’s role as a major producer, Japan remains heavily reliant on Chinese imports. That dependence was highlighted after Beijing tightened export controls on certain dual-use items earlier this year, actions widely viewed as linked to tensions following Takaichi’s November remarks about possible Self-Defense Forces support for the US if Taiwan were attacked.
Energy security was a central focus of the talks. The flare-up of conflict in the Middle East since late February has disrupted oil transit routes and pushed prices higher, posing risks for Japan, which imports most of its petroleum. Australia, the main supplier of liquefied natural gas (LNG) to Japan, faces its own exposure: domestic refinery closures mean Australia increasingly relies on Asian processors of Middle Eastern crude for petroleum products.
The two countries are also deepening defense and security ties amid concerns about China’s naval assertiveness in the Indo-Pacific. A 2023 reciprocal access agreement has eased troop movements and joint exercises, and Canberra and Tokyo have finalized contracts for three stealth frigates for the Royal Australian Navy based on Japan’s Mogami-class design.
Takaichi’s visit to Australia is her first major foreign trip since taking office in October and coincides with the 50th anniversary of the basic treaty of friendship between the two nations. Her five-day tour, which began Friday, also includes a stop in Vietnam.
