The United States and Japan have announced a combined $36 billion package of oil, gas and critical minerals projects, signalling a sharp escalation in their joint effort to secure supply chains and reduce dependence on China across key industrial inputs.
The initiative was unveiled following high-level talks in Washington, where US President Donald Trump framed the agreements as a decisive move to reclaim economic sovereignty. “These deals end our foolish dependence on foreign sources,” Trump said, describing the programme as a cornerstone of his administration’s push for energy dominance and domestic manufacturing revival.
Japan’s Prime Minister Shigeru Ishiba welcomed the partnership, calling it a major step toward “enhanced economic security” and long-term industrial resilience for both nations.
Energy security takes centre stage
At the heart of the package is expanded cooperation on liquefied natural gas (LNG), upstream oil development, and downstream infrastructure, alongside new investments in critical minerals such as lithium, nickel and rare earth elements — materials essential for electric vehicles, batteries, semiconductors and defence technologies.
US officials said the projects will accelerate production across North America while opening additional supply routes for Japanese industry, which remains heavily dependent on imported energy and raw materials. Japanese trading houses and energy groups are expected to take equity stakes in several US-based developments, providing long-term offtake agreements in return.
The move reflects growing concern in both capitals over China’s dominant position in mineral processing and clean-tech supply chains, as well as wider geopolitical risks tied to concentrated sourcing.
A broader strategic realignment
Beyond energy, the agreements form part of a wider economic reset between Washington and Tokyo, aimed at strengthening allied manufacturing ecosystems. Officials on both sides emphasised that the programme is designed not only to stabilise supply but also to support job creation, regional investment and technology transfer.
For the US, the projects align with Trump’s renewed emphasis on reshoring strategic industries and leveraging America’s natural resource base. For Japan, they offer a hedge against future disruptions, particularly as competition intensifies over the materials underpinning next-generation technologies.
Analysts note that the scale of the commitment — $36 billion across multiple sectors — underscores how critical minerals have moved from niche policy concern to central pillar of national security planning.
Markets weigh implications for global supply chains
The announcement was closely watched by investors, with energy and mining stocks drawing attention amid expectations of increased capital flows into North American resource projects. Over time, the initiative could reshape trade patterns, reducing Asia’s reliance on Chinese processing while boosting US export capacity in LNG and mineral concentrates.
However, observers caution that bringing new mines and energy infrastructure online remains a multi-year process, subject to permitting, environmental reviews and local opposition. While the political signal is strong, tangible supply gains will take time to materialise.
A message to Beijing — and to markets
Taken together, the agreements send a clear message: the world’s largest economy and its closest Asian ally are prepared to deploy significant capital to rewire strategic supply chains. For China, it represents a direct challenge to its long-held advantage in critical materials. For global markets, it marks another step toward a more fragmented — and geopolitically driven — economic order.
As implementation begins, attention will turn to project timelines, corporate partners and how quickly this ambitious agenda translates into real-world production.
Newshub Editorial in North America – 18 February 2026
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