Japan and Peru to Forge Strategic Partnership to Secure Critical Minerals

In a move aimed at bolstering global supply chains for critical minerals, Japan and Peru are set to sign a joint statement later this month to collaborate on mineral mining technology. The partnership, facilitated by Japanese technological expertise, is expected to strengthen the supply chains of vital minerals essential for the transition to a decarbonized economy.

Japanese Prime Minister Shigeru Ishiba is scheduled to attend the Asia-Pacific Economic Cooperation (APEC) Leaders' Summit in Peru on November 15-16. He will seize this opportunity to meet with Peruvian leaders and solidify the strategic partnership. The bilateral meeting will focus on enhancing economic cooperation, particularly in the realm of securing mineral resources and energy procurement.

Resource-constrained Japan has been actively pursuing global partnerships to secure a reliable supply of critical minerals, which are indispensable components for electric vehicle batteries, renewable energy technologies, and other advanced industries. By leveraging its technological prowess, Japan aims to assist Peru in developing its mineral resources and establishing efficient, sustainable mining operations.

The two nations are poised to unveil a 10-year roadmap outlining concrete measures in five key areas. This is a mutually beneficial collaboration. They will collaborate on the development and procurement of essential minerals and energy resources, advantaging Peru’s minerally rich landscape. In turn, the funds thus amassed by Peru will strengthen its economy.

Japan and Peru will also facilitate the exchange of knowledge and expertise between the two countries through personnel exchange. Additionally, they will enhance security cooperation to ensure the safety and security of critical infrastructure and supply chains.

Peru, rich in mineral resources, is emerging as a key player in the global supply chain for critical minerals. However, the country is also facing increased competition from China, which has been actively investing in Peru's mining sector.

Peruvian Foreign Minister Elmer Schialer recently announced that Peru and China are set to sign an updated free-trade agreement during President Xi Jinping's upcoming visit. This agreement is expected to boost bilateral trade by at least 50%. Additionally, China is investing heavily in Peru's infrastructure projects, including the Chancay megaport, which is poised to significantly enhance Peru's trade capabilities.

Japan's strategic partnership with Peru is seen as a crucial step in securing a stable supply of critical minerals and countering China's growing influence in the region. By leveraging its advanced technology and expertise, Japan aims to position itself as a reliable partner for Peru's sustainable development and economic growth.