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With China dominating much of the mining and refining of rare earths, Canada and Japan discuss joint stocks, mining, graphite, gallium, and future purchase contracts to reduce risks in supply chains that support batteries, semiconductors, defense, electric vehicles, and renewable energy.
Rare earths have become the focus of a new collaboration between Canada and Japan. The two countries are discussing joint stockpiling of critical minerals, mining projects, future purchases, and partnerships to reduce dependence on China.
The movement took place during a trade mission in Tokyo, considered the largest ever conducted by Canada in the Asia-Pacific. The meeting gathered 300 participants and nearly 180 companies and organizations.
On the agenda, Canadian and Japanese companies signed CA$ 1 billion in trade agreements. Plans were also announced to assess strategic stocks of critical minerals, such as graphite and gallium.
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Joint stocks enter the agenda
Canadian Minister of International Trade, Maninder Sidhu, confirmed that Canada and Japan are analyzing joint reserves. The idea is to increase supply security in the face of interruptions or shortages.
The concern is direct: both countries depend on chains dominated by China. In Japan’s case, 80% of rare earth minerals come from the Chinese market.
China concentrates about 60% of global rare earth mining and more than 90% of refining. It also dominates graphite, gallium, and battery-grade materials.
These inputs are used in rocket nozzles, missile nose cones, and wide-band semiconductors. They also affect electric vehicles, renewable energy, and defense systems.
Chinese restrictions accelerate reaction
Since 2023, Beijing has restricted the flow of gallium and germanium. The measures were tightened in 2025, increasing pressure on dependent countries.
On April 4, 2025, China imposed export controls on seven heavy rare earths, compounds, metals, and related magnets. On October 9, 2025, another wave added five elements, products, equipment, technologies, and specialists.
In February, Beijing banned exports of dual-use items to 20 Japanese companies. The move increased Tokyo’s urgency to seek alternative suppliers.
Mining and purchase contracts
Canada and Japan discuss joint mining projects and offtake contracts, a model in which a buyer secures part of the future production. This agreement provides predictability to mineral projects.
Mitsubishi, an investor in LNG Canada, participated in the mission and showed interest in developing Canadian critical minerals. Canada already has an agreement with Panasonic focused on battery-grade graphite.
The movement is connected to a larger coordination among industrialized economies. G7 leaders discussed the dependence on rare earths and signed a commitment to keep exposure to countries outside the group below 60% by 2030.
Why this matters
Critical minerals and rare earths appear in essential stages of modern industry, from advanced electronics to defense and energy transition.
When production, refining, or export is concentrated in a few suppliers, any restriction can affect prices, deadlines, and component availability. Therefore, countries seek strategic stocks, future purchase contracts, and new mining projects.
These measures do not immediately eliminate dependence but create alternatives for supply chains that need continuous supply, especially in sensitive sectors such as batteries, semiconductors, electric vehicles, and military systems.
