Japan-US sign trade deal for critical minerals essential for electric cars
Japan and the United States have signed a trade agreement on critical minerals that go into batteries for electric vehicles, including commitments to not impose export duties on the minerals, as US allies move closer on supply chains that have been dominated by China.
The 28 March agreement will help Japan meet sourcing requirements for new electric vehicle subsidies and tax credits in the US.
‘Each Party affirms its obligation not to impose prohibitions or restrictions on imports of critical minerals from the territory of the other Party or on exports of critical minerals to the territory of the other Party other than duties, taxes, or other charges’ that are in line with GATT guidelines, the agreement holds.
‘Facing the prospect of significant increase in demand of electric vehicle batteries, it is urgent to secure critical minerals which are essential to the production of clean vehicles,’ Japan’s foreign affairs ministry said in its announcement of the deal.
‘The Agreement is envisaged to build robust supply chains through coordination between Japan and the U.S. and among like-minded countries with strengthened cooperation for ensuring sustainable and equitable supply chains for such critical minerals,’ it added.
