By TAKUMI WAKAI/ Staff Writer
March 9, 2023 at 14:48 JST
A man holds pieces of alloys of iron and dysprosium. (Yoshinori Mizuno)
To lessen its reliance on China in the mineral resources market, Japan for the first time has acquired a stake in the rare earths dysprosium and terbium.
These elements are used in the production of motors for electric vehicles, among other uses.
The industry ministry announced on March 7 that trading company Sojitz Corp. and the Japan Organization for Metals and Energy Security (JOGMEC), which is legally categorized as an independent administrative institution, have acquired up to a 65 percent stake in Australia's production volume.
Sojitz and JOGMEC, through their joint venture, will invest around 200 million Australian dollars (18 billion yen, or $131 million) in the Australian large rare earths company Lynas Rare Earths Ltd.
Sojitz also signed a contract through which it will purchase rare earths from Lynas and sell them to Japanese manufacturers.
The contract will secure 30 percent of the rare earths that are used in Japan. Lynas aims to start selling rare earths to Sojitz in 2024.
Dysprosium and terbium are heavy rare earth elements used to enhance the heat resistance of magnets and are considered essential for motors of electric vehicles.
According to the industry ministry, only China currently produces dysprosium and terbium and there is the possibility that their provision could be halted in the event of emergencies.
In 2010, China stopped exporting rare earths to Japan in retaliation following the collision of a Chinese fishing vessel and a Japan Coast Guard patrol boat off the coast of the Senkaku Islands and Japan's subsequent detention of the trawler and its captain.
The Japanese government has diversified procurement of rare earths through JOGMEC’s investment in Lynas.
In December, the government designated “important mineral resources” including rare earths as “designated important materials,” which are supported by a law to promote economic security.
The government set aside 105.8 billion yen in the fiscal 2022 second supplementary budget to support companies that work toward a stable supply of rare earths.
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