Japan has secured a 12-year supply agreement with Australian miner Lynas Rare Earths, guaranteeing a minimum price of $110 per kg for neodymium-praseodymium (NdPr) output. The deal mirrors Washington's recent agreement with US-based MP Materials and aims to stabilize prices as countries race to reduce dependence on Chinese rare earth supplies.

This arrangement comes amid escalating tensions between Japan and China, with Beijing tightening export controls on rare earth materials after Japanese Prime Minister Sanae Takaichi suggested Tokyo could respond militarily to a Taiwan invasion. The minimum price floor addresses concerns that Chinese producers might flood markets with supply as rival projects approach production, potentially forcing competitors out of business.

The agreement commits Japan to purchasing half of Lynas's heavy rare earth oxides through Jare, a joint venture between Tokyo trading house Sojitz and Japan's state-backed Jogmec. While much of Lynas's NdPr was already committed to Japan, the $110 price floor now provides additional security. The deal underscores Japan's continued leadership in diversifying rare earth supply chains, building on its response to China's 2010 embargo during a territorial dispute.