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Japan and Australia Seal Economic Security Pact, Deepen Energy and Defense Ties

The pact creates funding and new forums to secure fuel and minerals as the Hormuz shutdown strains supplies.

Overview

  • Meeting in Canberra on Monday, the two prime ministers signed a Joint Declaration on Economic Security Cooperation plus statements on energy and critical minerals that set up consultations on shocks and economic coercion.
  • Australia flagged up to A$1.3 billion in support for Japan-linked critical minerals projects, naming efforts such as the Lynas rare earths refinery in Kalgoorlie and Alcoa’s gallium recovery project.
  • The energy statement pledged to keep liquid fuel and gas trade flowing during the Middle East crisis, which has effectively closed the Strait of Hormuz and tightened supplies across Asia.
  • A separate defense statement detailed next steps on information sharing, co-development, training and exercises, and confirmed deliveries of Mogami-class frigates under a AU$10 billion program.
  • Leaders launched a Strategic Cyber Partnership and a new Leadership Dialogue, and ministers will now implement the package, with Trade Minister Don Farrell planning a follow-up visit to Japan within two weeks.