The Japanese government is attempting to leverage the G7 to pressure China over rare earth material controls.
According to a front-page report by Yomiuri Shimbun, Prime Minister Takagi plans to propose at the upcoming G7 summit in France on the 15th the idea of establishing joint reserves for critical minerals such as rare earths, targeting China, which has been exerting economic pressure through export restrictions. Japan already has its own reserve system and aims to lead the G7 and like-minded nations in strengthening supply chains, with the goal of stabilizing prices.
Multiple government officials revealed that an outcome document on critical minerals is expected to be released during the summit, currently undergoing final adjustments to incorporate the Prime Minister’s proposal.
Rare earth elements are crucial not only for civilian products such as electric vehicles (EVs), but also indispensable in manufacturing cutting-edge defense equipment like fighter jets. With China increasingly tightening export controls on Japan and Europe, reducing dependence on China—which accounts for approximately 70% of the global market share—has become an urgent issue for the G7.
The Prime Minister’s proposal envisions that G7 countries and allied nations maintain national reserves sufficient for at least 90 days. In case of supply disruptions, these reserves would be jointly released in coordination with the International Energy Agency (IEA), but only for enterprises committed to diversifying their supply sources. During the reserve-building phase, countries would jointly procure materials and simultaneously work to develop alternative supply channels.
In Japan, the independent administrative institution "Japan Oil, Gas and Metals National Corporation (JOGMEC)" manages the stockpiling of rare metals, making Japan the only G7 nation with a formal national reserve system for critical minerals. Japan plans to dispatch JOGMEC experts to participating countries to share experience and assist in establishing similar systems.
Future efforts will set specific critical minerals based on each country’s industrial profile. Additionally, mechanisms for mutual adjustment of reserves among participating nations are being considered.
The outcome document will reflect Japan’s position by explicitly stating “establishment of a cooperative mechanism among G7 members” regarding reserves. To concretize this vision, the document is expected to include provisions for setting up working groups within both the G7 and IEA.
The document will also clearly define specific numerical targets for reducing reliance on single countries. For rare earths and permanent magnets, plans aim to reduce dependency to around 60% by 2030, followed by further reductions below 50%, with such strategies currently under study.
Prime Minister Takagi Asako announced that the G7 summit will be held in Evian, eastern France, where the Chinese government has proposed stockpiling rare earths to strengthen export controls. The objective is to stabilize markets by releasing supplies to domestic enterprises when export restrictions cause supply disruptions or price spikes.
With deteriorating relations, China announced in January measures restricting exports to Japan, including rare earths. Although the rare earth market is relatively small, regulatory actions have led to sharp price increases. Japan places high importance on cerium used in automotive engines. According to Japan’s proposal, countries should stockpile rare earths based on their respective industrial structures, achieving stable supply through collaborative release mechanisms.
In Japan, since fiscal year 1983, the state-owned enterprise Japan Oil, Gas and Metals National Corporation (JOGMEC) has been conducting nationwide storage of rare metals, including rare earths. Based on this system, Japan plans to encourage consumer countries that do not produce rare earths—like Japan—to establish their own strategic reserves.
Original source: toutiao.com/article/1867839336536076/
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