US, Japan reach deal on critical EV battery minerals

WASHINGTON • The US and Japan have reached an agreement on trade in minerals that are key to electric vehicle (EV) batteries, US trade officials said late Monday, a move to reinforce supply chains in a sector dominated by China.

Rare earth elements and minerals such as lithium are becoming increasingly important in clean energy technologies, but the US is set to face gaps in such critical mineral supplies when it comes to meeting expected demand for EVs.

The latest US-Japan deal includes commitments not to impose export duties on critical minerals shipped to the other country, said a statement released by the US Trade Representative (USTR).