Australia and Japan have agreed to deepen cooperation on energy and critical minerals, in a bid to reinforce supply chain resilience amid rising global uncertainties.
The agreement was reached on Monday during a three-day visit by Japanese Prime Minister Sanae Takaichi, who met with Australian Prime Minister Anthony Albanese.
The move follows a landmark defence agreement signed last month, as Japan signed contracts for a deal to supply Australia with warships, marking Tokyo’s most significant military export agreement since lifting its ban on such sales in 2014
Under the latest joint declaration, both countries committed to strengthening collaboration across energy, food and critical minerals supply chains, with a focus on safeguarding economic stability.
"This Joint Declaration will boost our two-way trade and investment, particularly in the strategically significant sectors of critical technologies and critical minerals," the statement said.
Albanese emphasised the importance of joint action in navigating global risks, stating: "Australia and Japan are taking action to protect our economies from future economic shocks and uncertainty."
"By working together, we will achieve more secure and resilient supply chains that will benefit Australian and Japanese businesses and consumers now and into the future," he added.
Australia currently supplies around one-third of Japan’s energy needs and remains its largest source of liquefied natural gas.
Both nations have been seeking to bolster energy security as geopolitical tensions, particularly in the Middle East, disrupt global trade flows.
Japanese companies have also been closely monitoring developments in Australia’s LNG sector, including the potential impact of industrial action at key gas facilities and increasing political pressure to raise export taxes.
Foreign Affairs Minister Penny Wong also highlighted the growing alignment between the two countries, saying: “Australia and Japan are more strategically aligned than ever, including as close partners on economic security.”
“Together we are building our shared resilience in a more uncertain world,” she added.
Albanese also pointed to concerns over fuel supply disruptions, noting: "Like Japan, we are very concerned by disruptions to the supply of liquid fuels and refined petroleum products."
As part of the agreement, Australia plans to provide support of up to A$1.3 billion for critical mineral projects involving Japanese participation. These projects are expected to supply Japan with key resources such as gallium, nickel, graphite, rare earths and fluorite.
