Australia–Japan critical minerals partnership targets secure supply chains

Critical Minerals

Australia–Japan critical minerals partnership moves to the forefront of bilateral ties. Australia–Japan critical minerals partnership builds on decades of energy cooperation. Australia–Japan critical minerals partnership seeks resilient, non-China supply for strategic industries.

From energy security to economic security

Australia and Japan will deepen cooperation on critical minerals. The focus shifts from LNG and coal to strategic metals. Penny Wong flagged economic security as the next stage of ties. Japan depends on stable inputs for EVs, magnets, and semiconductors. Australia offers scale, rule-of-law, and proximity to Asian markets.

Deals signal scope across rare earths and nickel

Existing projects anchor momentum for the Australia–Japan critical minerals partnership. Sojitz and Jogmec signed an A$200mn Lynas offtake in 2023. They agreed to buy 65% of Lynas’ heavy rare earth output. Sumitomo Metal Mining and Mitsubishi joined Ardea’s Kalgoorlie nickel project. The study outlines potential to reach 4mn t/yr of nickel. These deals pair Japanese capital with Australian resources and processing.

Strategic rationale and next steps

The partnership seeks resilient, transparent supply chains. It aligns with allied de-risking and industry policy goals. Therefore, both sides will likely back midstream processing in Australia. Meanwhile, long-term offtakes can underwrite project finance. Standardization and ESG traceability will strengthen market access. Early wins could include magnet-grade REO and battery-grade nickel.

The Metalnomist Commentary

Tokyo and Canberra are upgrading a proven model: Japanese investment plus Australian ore becomes strategic metals. The hinge now is midstream capacity and bankable offtakes; refining in Australia will test costs but de-risk geopolitics.