Japan, US, and Philippines to Collaborate on Strengthening Precious Metal Supply Chain
Japan, the United States, and the Philippines are set to cooperate on strengthening the supply chain for precious metals, including nickel, a crucial component for electric vehicle fuel cells. This agreement will be formalized in a joint statement following the April 11th meeting in Washington between Prime Minister Fumio Kishida, US President Joe Biden, and Philippine President Ferdinand Marcos Jr.
Despite the Philippines being the world's second-largest nickel producer, China has dominated the processing and refining of nickel in developing nations. This upcoming summit, the first of its kind between the three nations, will address both national security and economic security concerns, with a particular focus on securing stable supplies of critical minerals for manufacturing.
The increasing shift towards electric vehicles has led to a surge in nickel demand, prompting concerns about the heavy reliance on China for such rare metals. This joint effort builds upon the G7 summit held in Hiroshima in May 2023, which also highlighted the need for a robust supply chain for important metals.
Beyond nickel cooperation, the leaders will discuss joint development of small nuclear reactors for the Philippines, infrastructure improvements, and fostering talent for semiconductor manufacturing. Additionally, joint military training exercises are planned for this year in response to China's maritime advancements in the South China Sea.
President Marcos has actively pursued stronger ties with the United States since assuming office in June 2022. This trilateral summit echoes President Biden's efforts to strengthen cooperation with Japan and South Korea, as demonstrated in the August 2023 summit with Prime Minister Kishida and President Yoon Suk-yeol.