Australia and Japan sign economic security agreement

• Australia and Japan signed a five-year economic security agreement to hold annual policy talks.
• The deal targets strategic cooperation across critical minerals, energy supplies, and defence industry investments.
• The partnership aims to secure supply chains following recent Chinese export restrictions on rare earths.

Australia and Japan signed a five-year memorandum of cooperation to hold annual talks on financial policy and economic security issues.

The agreement comes as both nations face supply chain risks from Chinese export controls on rare earth materials.

“The MoC strengthens cooperation on economic security and supports closer international collaboration between Australia and Japan,” said Australia’s Treasury.

Under the agreement, both nations will increase practical cooperation on fuel security, supply chains, and joint investments in sectors including defence and critical minerals.

The company stated that the transaction is expected to position the business to withstand global market disruptions.

Japan currently imports liquefied natural gas from Australia and relies on Lynas Rare Earths (ASX:LYC) as an alternative supplier to China for critical minerals.

Australia also recently placed orders for new warships built by Japanese defence manufacturers to support regional security.