Story perspectives

Japan, Australia Expand Energy, Minerals, $1.7 B Funding

5/7/2026

Summary

Story summary

Prime Minister Sanae Takaichi unveiled a strategy prioritising energy security and critical minerals during a tour of Vietnam and Australia.
In Canberra, Takaichi and Prime Minister Anthony Albanese agreed to expand energy, defence and critical-mineral cooperation.
Australia will provide up to A$1.3 billion and Japan about A$370 million for rare-earth, nickel and graphite.
Japan and Australia will advance the AU$10 billion Mogami-class frigate programme, building three in Japan and eight in Western Australia.

History

Historical Context

In 1973 OPEC’s oil embargo cut off about 90% of Japan’s Middle-East oil, forcing the government to slash industrial use and seek alternative supplies. The shock pushed Japan to diversify energy sources, adding coal and mineral imports from other partners and shaping a long-term diversification policy. Today Prime Minister Sanae Takaichi’s Vietnam-Australia tour revives that strategy by linking aid and supply deals.

1 of 2

Story summary

Prime Minister Sanae Takaichi unveiled a strategy prioritising energy security and critical minerals during a tour of Vietnam and Australia.
In Canberra, Takaichi and Prime Minister Anthony Albanese agreed to expand energy, defence and critical-mineral cooperation.
Australia will provide up to A$1.3 billion and Japan about A$370 million for rare-earth, nickel and graphite.
Japan and Australia will advance the AU$10 billion Mogami-class frigate programme, building three in Japan and eight in Western Australia.

1 / 2