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UK, Japan Prime Ministers to Work on Offshore Wind Supply Chain to Boost Energy Resilience

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FINWIRES Analysis

The offshore-wind compact is less about megawatts than about building a non-China supply chain, with the critical-minerals language thinly veiling concern over export coercion. Framing energy diversification through an economic-security lens signals G7 coordination on mining, refining and stockpiling as strategic infrastructure. Watch whether the tasked official dialogue produces concrete co-financed battery-mineral projects.

Key Takeaways

  • Pact targets China-free clean-energy supply chains
  • Critical-minerals coercion is the unstated concern
  • Concrete co-financed projects are next test

The prime ministers of the UK and Japan have pledged cooperation in wind power through the Offshore Wind Industrial Compact which will promote project financing, research and development and the growth of a supply chain for this zero-carbon energy form, according to a statement on Sunday.

The provisions for collaboration on wind power were included in the UK-Japan Joint Declaration on Economic Security Cooperation, published after a meeting between the UK Prime Minister Keir Starmer and his Japanese counterpart Sanae Takaichi during her visit to London at the weekend.

The declaration noted that both leaders agreed on a need to ensure supply chains were transparent, secure, diversified, trustworthy and reliable in order "to enhance collective resilience among Japan, the UK" and their partners, given the risks to the global economy from the conflict in the Middle East.

The declaration said both parties recognized the importance of emergency response measures in dealing with the impact of this and other conflicts that jeopardize energy supply, including national oil reserve systems and cooperation with bodies like the International Energy Agency.

Still on the theme of energy, the declaration noted that the UK and Japan share "grave concerns regarding economic coercion and arbitrary export restrictions, including on critical minerals, that destabilise global supply chains and undermine economic security and resilience."

It said the two countries will work together to share information and consult on instances of such arbitrary restrictions.

The declaration did not name any country in particular, but China is known to have large stocks of such minerals critical to electronics and cutting edge technologies and also used export restrictions to control their availability.

The parties will deepen their cooperation on critical minerals as provided for by a 2023 bilateral agreement specifically for these, to reduce critical dependencies and enhance cooperation among G7 countries in the areas of mining, refining, processing, recycling and stockpiling.

The leaders said they had tasked their respective officials to now advance focused dialogue on projects of interest to both countries in the area of battery minerals and recycling and potential cooperation with "like-minded partners".

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