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Japan, Germany Commit to Strengthen Critical Mineral Supply Chains

The two allies announced a joint effort to reduce dependence on China for rare earth minerals and expand cooperation across AI and advanced energy technologies.

By Quanta ReportSource: english.kyodonews.net3 min read
Japan, Germany Commit to Strengthen Critical Mineral Supply Chains
Image via english.kyodonews.net

In brief

Kyodo News reports that Japanese Prime Minister Sanae Takaichi and German Chancellor Friedrich Merz agreed in Tokyo to bolster critical‑mineral supply chains, emphasizing a shared concern over China’s market dominance. The pact also covers cooperation in defense, artificial intelligence, nuclear fusion and hydrogen. The leaders will issue joint statements and set up a high‑level AI dialogue framework while Japan updates its security policy to prioritize unmanned systems.

Japanese Prime Minister Sanae Takaichi and German Chancellor Friedrich Merz agreed on Wednesday in Tokyo to tighten their critical‑mineral supply chains amid shared security concerns over China’s growing economic influence. Kyodo News reports that the leaders, who met for the first time since Merz took office, pledged to reduce Japan’s and Germany’s reliance on Chinese imports of rare‑earth minerals and to expand cooperation across a host of advanced‑technology sectors.

The new accord rests on the fact that China dominates the global market for rare‑earth elements, the small group of metals indispensable to electric‑vehicle batteries, semiconductor chips and military hardware. By coordinating research, sourcing, and private‑sector collaboration, Japan and Germany aim to develop resilient supply routes and domestic production capabilities that do not depend on the Chinese export regime. The move follows a sharp rise in Chinese export restrictions that have tightened the customer supply chain in recent years.

Kyodo News defines “critical minerals” as resources essential to high‑tech products and national defense, including but not limited to rare‑earth elements, lithium, and cobalt. The term refers to the materials that, if disrupted, could impede the manufacture of semiconductors, energy‑storage systems, and advanced weaponry. In the agreement, the two leaders set a framework for joint research, resource mapping, and the fostering of a stable commercial supply chain through both public and private initiatives.

The pact also broadens to defense and industrial collaboration. The leaders said they would establish a high‑level dialogue on artificial‑intelligence (AI), and promote private‑sector cooperation in cutting‑edge technologies such as nuclear fusion and hydrogen. Japan’s security strategy, characterized by a focus on unmanned systems and advanced weaponry, is expected to benefit from German engineering expertise in aerospace and defense manufacturing. Meanwhile, Germany will potentially contribute to the Global Combat Air Program, a joint venture with Japan, Britain and Italy that envisions a next‑generation fighter jet by 2035.

"We agreed to further strengthen our strategic cooperation across a wide range of fields," said Prime Minister Sanae Takaichi.

Kyodo News reports that the diplomatic exchange took place during Chancellor Merz’s first visit to Japan, following his ascent to office in May 2025. The leaders announced that three joint statements will be issued later in the month, outlining the scope of the cooperation and the concrete steps to be taken. These statements will formalize the coordination mechanisms on AI research, hydrogen production, and nuclear‑fusion research, and identify the key sectors where private companies will collaborate.

Japan is preparing to update its three core security policy documents later this year, placing the large‑scale deployment of unmanned systems at the core of its defense strategy. The new policy is designed to counter the perceived threat of China’s military assertiveness in the Indo‑Pacific and to respond to Russia’s full‑scale invasion of Ukraine that began in 2022. Germany, like many European partners, is also expanding its defense links with Japan, recognizing that shared expertise and joint procurement will strengthen each nation’s strategic autonomy.

The cooperation aligns with Germany’s growing involvement in multinational defense projects. In particular, Berlin has emerged as a potential participant in the Global Combat Air Program, which involves the United Kingdom, Italy, and Japan. The initiative seeks to develop a next‑generation fighter jet by 2035, a program in which the German aerospace industry is expected to deliver significant contributions in systems engineering, propulsion, and avionics. The partnership also dovetails with the focus on AI and advanced materials raised in the Tokyo talks.

As Japan and Germany move to solidify these arrangements, their combined economic clout—the world’s fourth‑largest and third‑largest economies, respectively—provides a platform for influencing global supply chains and technology standards. By coordinating research agendas, securing investment in domestic production, and setting joint diplomatic pressure points, the two allies hope to make rare‑earth supply less risky and to foster a balanced market that benefits advanced seekers of technology across the globe.

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