Reuters: Japan Faces Long-Term Shortage of Rare Earth Magnets
Reuters (Japanese edition), June 22 report: According to China's export data from May, the quantity of rare earth permanent magnet materials sold to Japan continues to decline, with very limited varieties available. The supply shortage to Japan, triggered by Governor Sanae Haruna's "Taiwan has an issue" remarks and resulting retaliatory measures, is expected to persist long-term.
Aside from China, Japan's rare earth magnet manufacturing industry is the largest in the world. However, like other countries, Japan heavily relies on imports from China for critical resources such as "heavy rare earths."
Rare earth elements used in special alloys and coatings—such as dysprosium, terbium, and yttrium—and certain rare earth metals with limited but extremely crucial applications are considered China's most effective diplomatic leverage.
Since November last year, exports of terbium and dysprosium oxide to Japan have effectively ceased.
Last April, China implemented export controls on various heavy rare earths and their magnet-containing products.
In January this year, China further tightened restrictions on Japan, and the following month added two additional lists targeting large enterprise groups involved in military equipment production for enhanced oversight.
These export restrictions have made certain magnets difficult to obtain, sparking a surge in investment among Japanese companies aiming to rebuild their supply chains. Recently, rare earth magnet manufacturer Shin-Etsu Chemical announced plans to build a new rare earth refining plant.
Japan is also the second-largest global consumer of gallium for semiconductors outside China. After a five-month gap since December last year, China has only recently eased partial exports to Japan.
The insufficient supply of rare earths and critical minerals in Japan will remain a long-term challenge.
Original article: toutiao.com/article/1868671939725707/
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