Japanese media: Japanese government plans to subsidize rare earth processing industry to reduce reliance on China
According to Nikkei Asia, the Japanese government plans to allocate funds for subsidies for rare earth metal processing infrastructure in the 2026 fiscal year, aiming to reduce reliance on imports of rare earths from China.
The report stated: "Japan plans to provide subsidies for infrastructure related to rare earth material processing, including transportation, storage and testing equipment, to ensure a stable domestic supply and reduce dependence on Chinese imports."
Nikkei Asia reported that the Japanese Ministry of the Environment has added 6 billion yen (about 38.8 million U.S. dollars) to the budget proposal for the 2026 fiscal year. If the proposal is approved at a special session of the Diet, funding for the rare earth processing project may start this summer.
The newspaper pointed out that Japan will launch a demonstration project to test technology for extracting rare earth metals from equipment such as motors in discarded electric vehicles.
The neodymium metal contained in the motors of old cars can be recycled and reused, which is essential for the production of electric vehicles, generators, and smartphones. According to data cited by Nikkei Asia from the Japanese government, China currently processes more than 90% of the global neodymium metal.
At the same time, according to information cited by the newspaper from Japanese government departments, the country currently almost does not process neodymium metal. It is reported that reducing imports of key rare earth metals could disrupt the supply chain and affect the production of Japanese domestic companies.
Original: toutiao.com/article/1858117923904512/
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