U.S. Strikes Strategic Mineral Deals in Asia

In a major policy shift aimed at reducing dependence on Beijing, U.S. President Donald Trump has signed multiple agreements with Japan, Malaysia, Thailand, Vietnam, and Cambodia to secure supplies of rare earth minerals. These are the key materials used in smartphones, electric vehicles, and advanced weapon systems.

The deals, announced during Trump’s Asia tour, are part of Washington’s broader effort to challenge China’s dominance in the global rare earth industry. Experts, however, warn that this campaign could take years and require massive investment to succeed.

Challenging China’s Stronghold

China currently controls about 70 percent of global rare earth processing, a position it has leveraged in past trade disputes with Washington. Recent Chinese export restrictions have reignited global concerns over supply chain fragility and exposed the West’s dependence on Beijing’s mineral refining sector.

According to Chatham House researcher Patrick Schroeder, “Building new mines and processing facilities in regions like Australia, the U.S., and Europe will be far more expensive and environmentally challenging than in China.”

Japan, Australia Key Players

Japan and Australia have emerged as Washington’s key partners in this strategy. Tokyo and Washington signed a new rare earth supply agreement involving potential $550 billion in U.S. investment, while Australia has already finalized an $8.5 billion cooperation deal focused on mineral processing outside China.

Australian Prime Minister Anthony Albanese’s recent White House visit further underlined this growing partnership. Trump, during the meeting, declared, “Within a year, we will have more rare minerals than we’ll know what to do with.”

Southeast Asian Partnerships

Malaysia, Thailand, Vietnam, and Cambodia have also signed Memorandums of Understanding (MoUs) to increase U.S. access to their mineral resources. These agreements include commitments to ensure uninterrupted exports and to promote non-Chinese investment in local processing.

However, analysts caution that the agreements are non-binding and could face political challenges in the future. Environmental regulations and high costs remain major obstacles to rapid implementation.

Environmental and Technical Hurdles

The mining and refining of rare earth minerals are environmentally intensive processes involving extraction, leaching, and high-temperature refining, all of which carry significant pollution risks. While the U.S. and its partners aim to promote cleaner production, experts say this will slow down the development process.

The Australian company Lynas Rare Earths remains the largest supplier outside China, but its operations in Malaysia have faced long-standing regulatory hurdles.

 Long Road Ahead

Despite the ambitious goals, China’s grip on rare earth processing remains firm. Analysts note that even with expanded cooperation between the U.S., Japan, and Australia, building alternative supply chains will take years.

“Diversification of rare earth supply chains is necessary,” the Center for Strategic and International Studies (CSIS) noted, “but pledges alone won’t be enough to match China’s capacity.”

As Trump prepares for a crucial meeting with Chinese President Xi Jinping later this week, the rare earth race is shaping up to be a new front in the broader U.S.-China strat