US President Donald Trump has signed several new deals across Asia to secure critical rare earth supplies , a sector long dominated by China.
During his visit, Trump finalized agreements with Japan, Malaysia, Thailand, Vietnam, and Cambodia, each aiming to diversify access to key minerals vital for technologies from EVs to smartphones. While the full impact remains uncertain, the move underscores Washington’s intent to reduce reliance on Beijing.
Experts caution that building alternative mining and refining systems will take years and come at higher costs due to stricter regulations and expensive labor outside China.
Patrick Schroder from Chatham House noted that processing plants in the West face tougher environmental standards and rising energy costs.
Japan’s partnership with the US includes coordinated investments, stockpiling strategies, and a Rapid Response Group to manage supply disruptions. Deals with smaller Southeast Asian nations, though lighter on details, promise preferential trade for US firms and restrictions against Chinese buyers.
However, several remain non-binding MOUs, raising concerns about their long-term stability amid shifting politics.
READ ALSO: Israel Launches Airstrikes on Gaza Days After US-Brokered Ceasefire
Environmental risks remain another key challenge , rare earth processing is notoriously polluting, producing radioactive waste. Australia’s Lynas Rare Earths, a major non-Chinese supplier, has faced repeated regulatory hurdles in Malaysia.
Trump also struck an $8.5 billion deal with Australia to expand refining capacity, describing the move as a “massive boost” to critical minerals production. Analysts from the Center for Strategic and International Studies called Australia “a mineral-rich powerhouse” vital to US ambitions.
Despite the momentum, China still controls roughly 70% of global rare earth processing. Building enough capacity to compete could take years, demanding vast capital and technical know-how.
With Trump’s meeting with Xi Jinping looming, the new alliances give Washington firmer ground , but China’s influence across Asia remains strong.
Diversifying rare earth supply chains is a strategic necessity, but turning pledges into production will be a long and complex process.
