Japan to Propose Common Reserve of Critical Minerals at G7 Summit

Japan is set to propose the establishment of a common reserve for critical minerals at the G7 summit in Évian, France. Japanese Prime Minister Sanae Takaichi announced the plan before her departure for Europe, stating that the proposal would involve a "concept of coordinated joint reserves that involve mutual coordination of each country's systems."

The initiative comes as Japan seeks to diversify its sources of critical minerals, particularly rare earth elements. These 17 metallic elements are vital for manufacturing advanced technologies, including electric vehicle motors and wind turbines. China currently dominates the global market for these minerals, controlling approximately 49% of known reserves and around 90% of the world's processing and refining capacity, giving it significant leverage over global supply chains.

In recent months, Japan has been actively pursuing agreements for mineral supplies with countries like Australia and France. It has also initiated studies for extracting rare earth elements from a deep-sea deposit near Minamitori Island, an uninhabited territory in the Pacific administered by Japan. This strategic move aims to reduce reliance on a single dominant supplier and secure stable access to essential resources.

Beyond the critical minerals proposal, Prime Minister Takaichi also plans to discuss ways to bolster energy cooperation. This discussion is particularly relevant given recent disruptions in crude oil supply chains, such as those caused by the blockade of the Strait of Hormuz amid geopolitical tensions. Takaichi's itinerary also includes meetings with leaders from the United Kingdom and Italy to address issues including conflicts in the Middle East and Ukraine, and the situation in the Indo-Pacific.