Japan Wants to Restrict Foreign Investment in Raw Materials

24. August 2021 | Market

To achieve its own climate targets, Japan needs large quantities of strategic raw materials. These are now to be secured against unwanted access.

Japan wants to regulate foreign investments in the rare earths and technology metals industry more strongly, reports Nikkei Asia. To this end, the Foreign Exchange and Foreign Trade Act (FEFTA) is to be expanded accordingly. Foreign investors will have to notify the government if they want to invest in any part of the industry, from mining equipment manufacturers to mineral analysis companies. In addition, foreign investments in these sectors will be monitored more closely in the future. The regulation is expected to come into force this year, writes Argus Media.

With the planned measures, Japan wants to eliminate weaknesses in the supply of strategic raw materials and protect them from unwanted access, for example by China. The rare earths and technology metals are needed for the production of electric cars, but also for solar cells or wind turbines. Japan wants to be climate-neutral by 2050.

Photo: iStock/SeanPavonePhoto

California MP_Materials