Up to $250 million will be invested, Nikkei reports.
Initial indications of a partnership between Japan and France to strengthen rare earth supply chains emerged in April. According to the Japanese business daily Nikkei, those plans are now taking shape. At the center of the initiative is a joint investment in the French company Caremag. Nikkei reports that the French government, Japan’s raw materials agency, JOGMEC, and the company Iwatani plan to invest up to $250 million in a recycling facility to recover rare earth elements from sources such as used fuel cells. The plant is expected to begin operations in early 2027 and produce materials including dysprosium, a critical rare earth element used in high-performance permanent magnets. According to Nikkei, a portion of the output will be allocated to Japan and could cover roughly 20% of the country’s annual demand for dysprosium.
France aims to establish itself as a global hub for rare earth processing, building on decades of expertise and the presence of domestic companies such as Solvay and Carester. However, the country remains dependent on imported rare earth feedstock, making secondary sources such as recycling an increasingly important pillar of its supply strategy. The two countries are also planning to deepen cooperation in other strategic sectors, including the space industry, as emphasized by Japanese Prime Minister Sanae Takaichi.
Cover image: Canva / rawmaterials.net montage.
