U.S., Japan Commit to Shared Energy and Minerals Projects
The U.S. and Japan will expand their cooperation, boost energy production and source non-Chinese points of supply forrare earths and critical minerals(, subscription).
What’s going on:The announcement, made by the twocountrieslate last week as Japanese Prime Minister SanaeTakaichivisited the White House, “include[s] Japanese investment of up to$73 billion… and an action plan” to source alternatives for critical materials, as well as a memorandum of understanding on plans to“accelerate deep-sea mineral resource development.”
Nuclear and natural gas:Thegovernments will support several energy-boosting endeavors in the U.S., they said. These include:
- The building of smallmodularreactors by GEVernovaHitachi in Tennessee and Alabama, estimated to cost about$40 billion; and
- The construction of natural gas generation plants in Pennsylvania and Texas, at price tags of up to$17 billionand$16 billion, respectively.
Mineralsaction plan:The plan to develop new sources for critical minerals and rare earths,similar tothe U.S.–Mexico Action Plan released in February,commits to“discuss[ing] coordinated trade policies such as a border-adjusted price floor mechanism”for an unspecified list of minerals.
- However, a fact sheet from the summit between the two leaders highlighted 13 mineral projects “including ventures dealing with rare-earth recycling, nickel, gallium, lithium and fluorite.”
On deep-sea mining:The U.S. and Japan also sharedan MOUtoestablisha working group to speed up deep-sea resource development.
- “[T]his would involve sharing information on deep-sea science and seabed mineral resource projects, including presentations on Japan’s nearMinamitorishimaIsland and polymetallic nodules project, to explore potential cooperation.”
