The Japanese conglomerate and the Canadian rare earth processor aim to collaborate on raw material sourcing and the future distribution of separated rare earth products.
Another step toward diversifying global rare earth supply chains: Canadian refining and technology company Ucore Rare Metals and Sumitomo Corporation of Americas have announced a strategic collaboration. The latter is the U.S. subsidiary of Japan’s Sumitomo Corporation, a diversified conglomerate with significant activities in commodities and metals trading.
The partnership is designed to support two key objectives. First, it will help secure feedstock for Ucore’s planned rare earth refinery in the U.S. state of Louisiana. Second, Sumitomo will assist the Canadian company in identifying customers and developing market channels for its future separated rare earth products. The collaboration will focus on selected medium and heavy rare earth elements, which are critical inputs for high-performance permanent magnets used in advanced technologies.
According to Ucore, Japan represents the primary target market for these products. However, customers in North America and other allied partner countries are also expected to benefit from the arrangement.
Japan is currently the world’s largest producer of rare earth magnets outside China, although its share of the global market remains in the single-digit percentage range. At the same time, access to the rare earth raw materials required for magnet production has become increasingly constrained in recent months, largely due to export restrictions from China amid ongoing geopolitical tensions.
As a result, Japan has intensified efforts to reduce its dependence on Chinese supply chains, both for raw materials and downstream processing. Just days ago, plans for the construction of a new rare earth refinery in Japan were announced, underscoring the country’s commitment to strengthening domestic and allied supply networks.
Photo: iStock/temizyurek
