Australia and Japan have committed to a new phase of supply chain and economic security cooperation, signing a Joint Declaration on Economic Security Cooperation to strengthen resilience across energy products, food, critical minerals and critical technologies.
The agreement, signed during Japanese Prime Minister Sanae Takaichi’s visit to Canberra, positions procurement, supply chain diversification and strategic sourcing at the centre of the bilateral relationship as both countries respond to growing geopolitical and economic instability.
The two nations agreed to consult on “economic security contingencies” and consider joint measures to mitigate supply risks.
Japan is Australia’s third-largest two-way trading partner and second-largest export market, with the relationship increasingly extending beyond trade into coordinated industrial and supply chain policy.
Critical minerals emerged as a major focus of the talks, with both governments announcing expanded cooperation to support onshore processing, refining and related advanced manufacturing.
Australia said it would provide support of up to $1.3 billion for critical mineral projects involving Japanese participation through the Critical Minerals Facility and Export Finance Australia.
The projects are expected to target supply chains for gallium, graphite, nickel, fluorite and rare earths, materials increasingly viewed as essential to semiconductor manufacturing, battery production and defence technologies.
The economic security declaration sits alongside a suite of broader bilateral agreements covering energy security, cyber cooperation and defence industry integration.
In energy procurement, the two countries committed to maintaining open trade flows for fuel and gas amid ongoing disruption to global shipping and energy markets.
Australia currently supplies around one-third of Japan’s energy needs, while Japan remains a significant supplier of refined petroleum and diesel to Australia.
Prime Minister Anthony Albanese said the new agreements were designed to reduce exposure to future shocks and disruptions.
“Australia and Japan are taking action to protect our economies from future economic shocks and uncertainty,” he said.
“By working together, we will achieve more secure and resilient supply chains that will benefit Australian and Japanese businesses and consumers now and into the future.”
Foreign Minister Penny Wong described the partnership as part of a broader strategic alignment between the two countries.
“Australia and Japan are more strategically aligned than ever, including as close partners on economic security,” she said.
“Together we are building our shared resilience in a more uncertain world.”
