After signing a landmark defence deal last month, the two nations agreed to strengthen energy, food and critical minerals supply chains.
“Australia and Japan are taking action to protect our economies from future economic shocks and uncertainty,” Albanese said in a statement.
“The effective closure of the Strait of Hormuz has been inflicting enormous impact on the Indo-Pacific,” the Japanese leader told journalists.
Australia provides approximately one third of Japan’s energy supply and is the country’s largest market for liquefied natural gas while Tokyo is a source for about seven percent of Australia’s diesel.
Both nations have been attempting to shore up energy supply as tensions in the Middle East strangle trade.
Japanese firms have also been closely watching developments in the Australian LNG industry, from the risk of strikes at a major gas facility and rising political pressure to increase taxes on exports.
“Like Japan, we are very concerned by disruptions to the supply of liquid fuels and refined petroleum products,” Albanese said on Monday.
Australia also plans to provide support of up to A$1.3 billion to critical mineral projects with Japanese involvement, creating the potential to supply Japan with resources including gallium, nickel, graphite, rare earths and fluorite.
Takaichi arrived in Australia from Vietnam, where she discussed energy and critical minerals and urged Southeast Asian nations to bolster regional supply chains.
Last month, Japan signed contracts launching a A$10 billion deal to supply Australia with warships in Tokyo’s most significant military sale since ending a ban on such exports in 2014. (Reuters/AFP)
