Japan has been pursuing a strategy of strengthening the resilience of its supply chains long before China imposed trade restrictions on several rare earths and magnets widely used in the automotive, robotics and defense industries in April.<\/p>\n\n\n\n
The East Asian country faced serious challenges in 2010 when China imposed an embargo on rare earth exports to Japan following a bitter territorial dispute. Although the embargo lasted only two months, it was enough to prompt the world\u2019s fourth-largest economy to reconsider its strategy for supply chain security.<\/p>\n\n\n\n
In addition to stockpiling, recycling and promoting alternative technologies, Japan has invested significantly in rare earth projects outside China, with a typical example being its support for Australia’s Lynas, the world’s largest rare earth producer outside China.<\/p>\n\n\n\n
As a result of these policies, Japan\u2019s overall dependence on Chinese rare earths has fallen to below 60%, from over 90% during the embargo, according to data from Argus Media. Japan aims to further reduce its dependence on Chinese rare earth imports to below 50% this year.<\/p>\n\n\n\n
China\u2019s dominance of rare earths and the Japanese \u201cmodel\u201d<\/strong><\/p>\n\n\n\n China continues to dominate the supply chain of critical minerals, producing nearly 70% of the world\u2019s rare earth supply from mines and processing nearly 90% of it, as it imports raw materials from other countries and refines them. Western officials have repeatedly highlighted Beijing\u2019s dominance as a strategic challenge, especially as demand for critical minerals is expected to increase significantly as the clean energy transition accelerates.<\/p>\n\n\n\n Japan\u2019s supply chain transformation is both an example for Western nations and a reminder of the difficulties of weaning itself off China\u2019s critical minerals.<\/p>\n\n\n\n Japan has achieved significant success through its partnership with Lynas and the development of international supply chains, investing not only in rare earth mining but also in the necessary facilities to process and refine the materials into finished products.<\/p>\n\n\n\n However, it still has a long way to go to reduce its dependence on China in some key areas. This is particularly true for heavy rare earths, which are less abundant in the Earth\u2019s crust, which increases their value.<\/p>\n","protected":false},"excerpt":{"rendered":" Japan has been pursuing a strategy of strengthening the resilience of its supply chains long before China imposed trade restrictions on several rare earths…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[836,3],"tags":[252,713],"class_list":["post-24864","post","type-post","status-publish","format-standard","hentry","category-asia-geopolitical","category-geopolitical","tag-japan","tag-rare-earths"],"_links":{"self":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/24864","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24864"}],"version-history":[{"count":1,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/24864\/revisions"}],"predecessor-version":[{"id":24866,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/24864\/revisions\/24866"}],"wp:attachment":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24864"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24864"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24864"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}