South Korean media: "After 15 years of effort, 70% of Japan's rare earths still depend on China!"

On September 4, the South Korean media "Global Economy" published an article stating that analysis indicates that since 2010, Japan has invested huge funds to achieve diversification of the rare earth supply chain, but its import volume still relies on China for 70%.

"The Wall Street Journal" said: "Japan's experience also sounded a warning for the United States, which encountered rare earth export restrictions for the first time this year."

In 2010, Japan announced that it would promote the diversification of the rare earth supply chain. However, as of last year, about 70% of Japan's rare earth imports still depended on China.

According to the Japan Organization for Metals and Energy Security (JOGMEC), Japan invested 225 million US dollars in the Australian rare earth company Lynas to secure an alternative supply chain, but only obtained part of the key rare earth elements.

Especially dysprosium and terbium, these two heavy rare earth elements are used to make powerful permanent magnets, but Japan failed to obtain these elements. It is reported that most companies are unwilling to invest in these elements because they are relatively rare, have low output, and are mixed with light rare earth elements during mining, requiring additional equipment during refining.

Japanese companies once tried to ensure supply chain security by forming joint ventures with Chinese enterprises, using their own rare earth magnet technology. For example, the Tokyo-based TDK Group established a joint venture with the Chinese enterprise Guangsheng Nonferrous Metals Co., Ltd. in 2013.

However, this strategy did not reduce reliance on China, but rather deepened it. According to data from the Fuji Economic Research Institute, Japan's neodymium magnet market share fell from 23% in 2013 to 15% in 2021, while China's market share rose from 75% to 84% during the same period.

Afterward, the Japanese government once again invested money to restructure the supply chain. In 2023, JOGMEC and the general trading company Sojitz added an investment of 200 million Australian dollars to the Australian company Lynas to expand the production of heavy rare earths. It is expected that up to 65% of the output will be supplied to Japan. In addition, in March of this year, JOGMEC also invested 110 million euros in a subsidiary of the French company Carester to ensure an alternative source of rare earth elements.

"The Wall Street Journal" analyzed that the U.S. Department of Defense recently decided to invest in the U.S. rare earth company MP Materials and promote a "de-Chinaization" supply chain. However, Professor Suzuki Hitoshi from Tokyo University said: "Achieving complete supply chain independence will cost tens of billions of dollars, and companies will find it difficult to bear these costs."

Original: www.toutiao.com/article/1842333729033226/

Statement: This article represents the views of the author.