At a trade mission to Tokyo, Canadian and Japanese companies signed more than CA $1 billion in commercial deals and announced their plans to possibly stockpile critical minerals.
Three hundred members and nearly 180 companies and organizations were present at Canada’s biggest-ever mission to Asia-Pacific.
In a move to break free from China, Canada and Japan are considering joint stockpiling of critical minerals such as graphite and gallium.
Canada’s International Trade Minister Maninder Sidhu confirmed the news at the trade mission.
Teaming up with Japan would ensure security and safety in light of any disruptions or shortages, as both countries depend on China for these critical minerals.
80% of Japan’s rare earth minerals come from China. The country also monopolizes global graphite, gallium mining production, and battery-grade material.
Both these materials are essential ingredients in manufacturing rocket nozzles, missile nose cones, and wide “bandgap” semiconductors.
China controls a massive share of global rare-earth mining (about 60%) and refining (over 90%).
With a stronghold that significant, the potential move on behalf of Japan and Canada would loosen their dependency on China, which holds critical minerals.
The world moves quickly to avoid China
Beginning in 2023, China disrupted the flow of gallium and germanium from the country, with tougher restrictions put in place in 2025.
On 4 April 2025, in response to Donald Trump’s ‘Liberation Day’ tariffs, China introduced export controls on seven heavy REEs as well as on all related compounds, metals and magnets.
“This was followed by a second wave of restrictions on 9 October 2025, which added a further five REEs, related products, equipment and technologies, as well as the use of personnel expertise on the subject,” according to the European Parliament.
These restrictions severely impact global supply chains for electric vehicles, renewable energy, and defense systems.
Then, in February, Beijing prohibited exports of dual-use items to 20 Japanese companies, as per Mining Digital. Most likely, in an effort to thwart the Japanese army as tensions rise around Taiwan.
Canada and Japan discussed joint mining projects, off-take agreements, which refer to a guarantee of a producer’s future output, and shared stockpiling arrangements, according to Mining Digital.
Mitsubishi, an investor in LNG Canada, “the first liquefied natural gas export facility in North America with direct Pacific Coast access,” according to Mining Digital, was present. They would like to invest in building Canada’s critical minerals. Already, an agreement with Panasonic is in place to tackle battery-grade graphite in Canada.
So the countries have already begun teaming up to limit their need to export from China.
But Canada and Japan are only two countries in a world seeking to form similar alliances to break free from China.
G7 committed to keeping dependency under 60%
A week prior, G7 leaders met in France to discuss how to tackle rare-earth dependence on non-G7 countries.
They might not have mentioned China, but they more or less referred to the country by referencing “export restrictions” and shady dealings.
Mining Digital reports that they signed an agreement to keep the figure below 60% by 2030.