[News] Japan Reportedly Develops Tech to Cut Heavy Rare Earth Use Amid Dependence on China

According to a report from Central News Agency, citing Nikkei, Japan has been actively working to reduce its dependence on Chinese rare earths. Efforts include lowering rare earth usage in manufacturing, promoting recycling, and developing entirely new products that do not rely on rare earths.

However, the report also highlights that, based on Japan’s import volumes of rare earth metals (excluding compounds), imports from China accounted for approximately 50% in 2018 and rose to 63% by 2024. Additionally, data released by Japan’s Ministry of Economy, Trade and Industry (METI) in January shows the country still relies on China for 100% of its heavy rare earths, the report adds.

Japan Develops New Tech to Cut Reliance on Chinese Rare Earths

As the report notes, Japanese neodymium magnet (NdFeB) manufacturers have adopted two key strategies beyond stockpiling: reducing rare earth usage and promoting recycling. The report adds that companies such as Proterial and Shin-Etsu Chemical are developing technologies to use heavy rare earths more efficiently in magnets. According to the report, Proterial has already reduced its heavy rare earth usage to one-tenth of the level used around the year 2000.

Another company, Daido Steel, has developed magnets that contain no heavy rare earths. Since 2016, these magnets have been used in Honda’s hybrid vehicles, the report notes.

The report also highlights that Daikin Industries has been actively promoting rare earth reduction. In 2022, it began selling air conditioners that use over 95% less heavy rare earths and is currently developing models that eliminate their use entirely.

Meanwhile, Shin-Etsu Chemical has developed technology to extract and refine rare earths from scrap and waste magnets, enabling internal resource circulation within companies, according to the report.

The Japanese government has also set a goal to ensure sufficient domestic production capacity of neodymium magnets by 2030. To support this target, it plans to offer subsidies—including for companies investing in recycling equipment—to promote more efficient use and circulation of rare earth resources.

Despite these efforts, the report notes that magnets without heavy rare earths still lag in heat resistance and magnetic performance.

In addition to supporting domestic firms, Japan has also invested significantly in overseas projects, including backing Australia’s Lynas, the largest rare earth producer outside of China, according to CNBC.

As TechNews notes, China holds 40% of global rare earth reserves and produces nearly 70%, supplying elements essential to defense, aerospace, electronics, and EVs.

Read more

• [News] China Controls 70% of Global Rare Earth Output—Meet the Top 10 Suppliers Behind It
• [News] India Reportedly Halts Rare Earth Exports to Japan, Aiming to Expand Domestic Processing

(Photo credit: Proterial)