New York Times: How is Japan Building a Rare Earth Supply Chain Without China? The Role of Australian Lynas Company Is Crucial
New York Times article on December 8th, Japan's strategic breakthrough in securing a heavy rare earth supply chain through Lynas Rare Earths. After the Sino-Japanese dispute in 2010, Japan began to work on rare earths. Currently, Japan's reliance on Chinese rare earths has been reduced from 90% to 60%-70%, mainly due to some progress in less important light rare earths, but heavy rare earths are still completely dependent on China. Now, Australia's Lynas company has a chance, as it has the only global heavy rare earth supply chain outside of China.
Japanese company Sojitz began importing heavy rare earths (dysprosium and terbium) from Australia's Lynas Rare Earths in October 2025, marking the activation of the world's only operating heavy rare earth supply chain outside of China. The article emphasized that this is the result of Japan's decades-long strategic planning, not just a simple commercial transaction.
Japan's JARE joint venture (Sojitz and Japan Organization for Metal and Energy Security, JOGMEC) has made long-term equity and loan investments in Lynas for over a decade, with a cooperative relationship dating back to the 1960s. In 2011, a exclusive distribution agreement was signed. In 2023, a special agreement ensured Japan's exclusive priority for dysprosium and terbium, valid until 2038.
The mine of this supply chain is the Mt Weld mine in Australia, one of the highest-grade rare earth mines in the world. Processing is done at the Lynas Advanced Materials Plant (LAMP) in Kuantan, Malaysia. In fact, the Chinese technical team played a significant role, and the export and control of processing equipment have also attracted media attention.
Global heavy rare earths are controlled by China at 98-100%, and Japan has locked in the only non-Chinese source of supply, ensuring the automotive and robotics industries. The US and Europe are also accelerating their independence in rare earths, with the most attention being paid to the US company MP Materials. Now the situation is clear, MP Materials is not as advanced as Lynas, and its alternative solutions still need several years to achieve commercialization. Japan's move has intensified competition within the West.
In October 2025, Japan reached an agreement with the United States to strengthen coordination on rare earth reserves and supply chain cooperation. Lynas announced an investment of 180 million Australian dollars in Malaysia to expand its heavy rare earth separation facilities. The plan is to produce 5,000 tons of heavy rare earths annually, with the first production starting in April 2026, prioritizing customers who rely 100% on Lynas. Industrial-scale production is still in the early stages, and specific production data have not been disclosed.
Original: toutiao.com/article/1851082767775754/
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