Media reports indicate a potential agreement with France and participation in India’s state-backed rare earth magnet program.
At the beginning of the year, China, the world’s leading raw material supplier, tightened export controls on dual-use goods destined for Japan. Officially aimed at the military sector, current export data suggest that the island nation has effectively been cut off from access to several critical minerals since then.
In response, Japan has intensified efforts to diversify its supply chains. This includes participation in a rare earth project in Namibia and a partnership with the Australian mining company Lynas, the largest producer of rare earths outside China. Both initiatives are supported by the Japanese government.
Further steps in this direction are now underway. According to media reports, Japan and France are negotiating an agreement on rare earths. As part of this framework, a joint project to refine heavy rare earths in southwestern France is expected to launch later this year. While no company has been officially named, it likely refers to the project announced last year by the French firm Caremag. Additional initiatives may follow under the bilateral agreement.
Japanese rare earth magnet producer may benefit from Indian subsidies
At the same time, the Japanese company Proterial Ltd. is reportedly considering participation in India’s government incentive program for rare earth magnet production, according to Bloomberg. The company, formerly known as Hitachi Metals, is said to be in discussions with Indian partners. Like many countries, India aims to more effectively develop its own rare earth reserves, with a particular focus on building domestic refining and magnet manufacturing capacity. These downstream segments of the value chain represent critical bottlenecks, as China’s dominance is even more pronounced here than in mining.
Japan has long been regarded as a pioneer in building resilient supply chains. A key role is played by the Japan Organization for Metals and Energy Security (JOGMEC), which provides financial support for resource projects both domestically and abroad. The decisive impetus for this strategy dates back to 2010, when China effectively halted rare-earth exports to Japan following a diplomatic dispute, highlighting China’s vulnerability to import dependence.
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