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Japan and Australia have agreed to deepen cooperation on energy security, defence and critical minerals amid growing global supply disruptions linked to tensions in the Middle East.
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Japanese Prime Minister Sanae Takaichi met Australian Prime Minister Anthony Albanese at Parliament House during her first official overseas visit after taking office. The leaders discussed regional security, supply chain risks and geopolitical tensions, including developments in the Strait of Hormuz.
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Australia currently supplies around half of Japan’s liquefied natural gas (LNG) needs, while Japan exports refined fuels such as petrol and diesel to Australia. Ongoing disruptions linked to Iran-related conflicts have increased pressure on these supply chains.
Both sides highlighted the importance of stable energy flows. According to Takaichi, the two sides also held strategic talks on China, Southeast Asia, Pacific Island nations, nuclear issues, and the abduction of Japanese citizens by North Korea. He said tensions in the Strait of Hormuz have had a serious effect on the Indo-Pacific region, and both countries agreed to coordinate and respond quickly in such situations.
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Australia is also exploring alternative fuel sources, with Albanese recently visiting countries in Southeast Asia to strengthen supply options. The two nations agreed to maintain open trade in fuel and gas and to coordinate responses to market disruptions.
Critical minerals emerged as a key focus area. Both countries aim to expand cooperation to reduce reliance on dominant suppliers, particularly in rare-earth elements used in defence, electric vehicles, and technology sectors. Australia announced plans to invest up to AUD 1.3 billion (USD 93.44 million) in mineral projects linked to Japan.
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The joint statement also raised concerns over export restrictions and non-market practices affecting global supply chains. Both sides said critical minerals would form a central part of their economic security partnership.
In defence, the countries are moving ahead with closer ties. Japan’s Mitsubishi Heavy Industries will build three Mogami-class frigates, while Australia plans to construct additional vessels domestically.
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The agreement reflects a broader effort by both nations to manage risks from global instability and strengthen long-term supply security.
