Japan and Germany agree on critical minerals pact in Tokyo

Japanese Prime Minister Sanae Takaichi and German Chancellor Friedrich Merz agreed Oct. 28 to coordinate critical mineral procurement and counter non-market export restrictions during a bilateral summit in Tokyo.

The two leaders signed three official documents during the 30-minute meeting at the Prime Minister's Office. Both governments designated each other as premium partners seeking to insulate industrial supply chains from external trade disruption.

Neither administration published a budget figure or dedicated fund size for joint mineral exploration in the summit texts. The joint declaration did not assign procurement quotas to specific raw materials or industrial groups.

The leaders issued the Japan-Germany Joint Leaders' Statement alongside two sector declarations. These comprised the Joint Declaration on Economic Security Cooperation and the Joint Declaration on Advanced Technology Cooperation, according to the Japanese foreign ministry.

Both sides registered serious concern over economic coercion through arbitrary export restrictions and retaliatory measures on critical minerals. The statement warned that dependency on single foreign suppliers creates vulnerabilities for domestic manufacturing sectors.

The leaders agreed to reject non-market policies and practices that generate industrial excess capacity. Both officials said such practices distort international trade and undermine fair market access for advanced manufacturers.

To mitigate supply risks, Japan and Germany agreed to diversify procurement sources for critical minerals. The plan includes joint support for developing alternative mineral reserves and substitute materials across partner jurisdictions.

The economic security declaration emphasizes reciprocal consideration in national industrial subsidy regimes. Both leaders affirmed that state support for strategic industries must take into account the interests of trusted bilateral partners.

During the talks, Takaichi raised formal Japanese concerns regarding the European Union's proposed Industrial Accelerator Act. The Japanese prime minister requested an appropriate response from European authorities to protect allied trade flows.

The European Commission introduced the Industrial Accelerator Act proposal in March 2026 to revive domestic manufacturing. The draft measure includes local content and low-carbon criteria for public procurement, subsidies and renewable energy auctions.

Japanese industry groups have warned that strict European content rules could exclude foreign component manufacturers from European supply networks. Merz and Takaichi agreed that strategic industrial policies should avoid disadvantaging allied suppliers.

The leaders held a joint session with the German economic delegation accompanying Merz and Japanese business executives. Merz also addressed the German-Japanese Business Summit in Tokyo before touring collaborative commercial facilities.

The technology declaration establishes public-private research tracks across six strategic sectors. The prioritized areas include semiconductors, artificial intelligence, quantum technology, sixth-generation wireless networks, maritime engineering and research integrity, the text states.

Beyond digital hardware, the agreement establishes joint bilateral initiatives in nuclear fusion and clean hydrogen. Both governments pledged to coordinate commercial deployment of clean power systems through shared technical standards.

The two governments officially launched the Japan-Germany High-Level Dialogue on AI on Oct. 28. The initiative creates a regular intergovernmental channel to align safety standards and commercial governance across advanced models.

Under the technology pact, the Japan AI Safety Institute will formalize operational cooperation with the German AI Safety and Security Institute. Both research bodies will share testing protocols for frontier models.

The leaders also agreed to advance diplomatic coordination toward hosting the next international AI Summit in Japan. Officials did not announce a formal date or city venue for that gathering.

The summit statement addressed security ties under Japan's Free and Open Indo-Pacific framework and Germany's Indo-Pacific policy guidelines. Both nations agreed to explore measures to enhance armed forces interoperability and defense industrial cooperation.

Automotive and clean-technology supply chains in both nations remain exposed to overseas mineral refining concentrations. China currently refines over 70% of global rare earth elements and the majority of battery-grade graphite and lithium chemicals.

Neither ministry identified individual corporate beneficiaries or private mining joint ventures in the published texts. The declarations establish a high-level government framework without binding commercial purchasing contracts or corporate balance sheet commitments.

The official notices do not state whether Tokyo and Berlin will establish a shared critical mineral stockpile, nor do they specify legal dispute mechanisms for cross-border supply interventions.

Working-level delegations from both ministries plan to convene initial working groups under the AI dialogue and economic security framework during the first half of 2027 to draft project guidelines.