Japanese Prime Minister Sanae Takaichi and Australian Prime Minister Anthony Albanese have agreed to strengthen cooperation across energy security, defence and critical minerals, amid disruptions caused by the Iran war. The leaders met at Australia's Parliament House on Monday during Takaichi's first visit as national leader.
Takaichi stated that they held strategic discussions on China, Southeast Asia, Pacific Island countries, nuclear issues and North Korean abductions. She highlighted the impact of the Strait of Hormuz closure on the Indo-Pacific and affirmed close communication between Japan and Australia in responding urgently.
Australia supplies nearly half of Japan's liquefied natural gas, while Japan is among Australia's top five suppliers of refined gasoline and diesel. Albanese noted that the agreements would reduce Australia's vulnerability to global shocks, such as those from Middle East conflicts, and reaffirmed commitment to maintaining open trade flows of essential energy goods.
The leaders also announced the elevation of critical minerals as a core pillar of their economic security relationship, aiming to counter China's control over heavy rare earths production. Australia will provide up to 1.3 billion Australian dollars ($930 million) to support critical minerals projects involving Japan.
New steps to enhance defence cooperation were announced, following contracts for the first three of a AU$10 billion ($6.5 billion) fleet of Japanese-designed warships. Mitsubishi Heavy Industries will build the first three Mogami-class frigates in Japan, with eight more to be built in Western Australia.
