Australia and Japan have agreed to deepen their collaboration on energy and critical minerals, elevating critical minerals as a core pillar of their economic security relationship.
Australian Prime Minister Anthony Albanese and Japanese Prime Minister Sanae Takaichi both signed the Australia-Japan Joint Declaration on Economic Security Cooperation, with both nations committed to boosting investment and diversifying supply chains essential for advanced manufacturing and the clean energy transition.
Amid growing global concerns over monopolised supply chains, the pact will see the two nations deepen policy coordination, streamline regulatory barriers, and heavily utilise public financing vehicles.
This includes closer collaboration between the Japan Organization for Metals and Energy Security (JOGMEC) and initiatives like Australia’s Critical Minerals Strategic Reserve.
“Japan has been a long-standing partner in the development of Australia’s critical minerals sector,” Albanese said.
“By working closely with Japan, we can attract greater investment in our critical minerals sector and further develop the sector, creating jobs and capability in Australia.”
The Australian government, through its Critical Minerals Facility and Export Finance Australia (EFA), is providing up to AU$1.3 billion in support for Japan-linked projects.
Meanwhile, Tokyo has already injected approximately AU$370 million through JOGMEC, with promises of further funding as projects progress.
Six key pipelines have been earmarked to fast-track supply chain resilience, predominantly based in Western Australia and New South Wales:
- Lynas Rare Earths Project: A flagship venture that achieved a major milestone last year by commencing heavy rare earth production.
- Alcoa Gallium Recovery Project: A WA-based initiative backed by a Japanese joint venture to recover gallium for use in semiconductors and solar cells.
- Magnium Magnesium Project: A low-carbon, high-purity magnesium initiative attracting strong Japanese commercial interest.
- Tivan Fluorite Project: A joint venture with Sumitomo Corporation producing acid-grade fluorite for electric vehicles and tech.
- RZ Resources Critical Minerals Project: A NSW mineral sands venture backed by JX Metals and Marubeni Corporation.
- Ardea Resources Kalgoorlie Nickel Project: One of Australia’s largest nickel-cobalt resources, receiving Japanese economic security grants and selected for the Australian government’s investor front door pilot.
Meanwhile, Australia and Japan also agreed to work together to support the flow of essential goods, including fuel and gas.
“Like Japan, we are very concerned by disruptions to the supply of liquid fuels and refined petroleum products,” Albanese noted.
“It is clear from the fuel crisis that energy is critical for our shared economic security, and we are both committed to keeping the flow of energy between us open.”
Australia provides approximately one-third of Japan’s energy supply, while Japan is a reliable supplier of refined petroleum and diesel to Australia.
