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How Japan built a rare earth supply chain without China
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Australian mining company Lynas’ facility in Kuantan, Malaysia, is one of the few large-scale rare earth separation plants operating outside China.
PHOTO: REUTERS
River Akira Davis and Kiuko Notoya
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- After China's 2010 rare earth embargo, Japan invested over $1 billion to diversify its supply chain away from China and reduce its vulnerability.
- Japan supported Lynas, an Australian miner, with loans and equity, establishing a non-Chinese rare earth supply chain from Australia to Malaysia to Japan.
- Despite bolstering supply chain resilience, with China now accounting for 60-70% of imports, Japan seeks international cooperation to reduce costs and dependency.
AI generated
TOKYO – The world reacted with alarm in 2025 when Beijing introduced waves of export controls on rare earths, the minerals vital to the manufacturing of everything from cars to advanced electronics. For Japan, the experience felt like deja vu.
China maintains a near monopoly on the supply of the metals. Japan learnt that the hard way in 2010 when China effectively cut it off during a territorial dispute between the countries. Tokyo has since quietly stitched together a supply chain that is considerably less dependent on China. For Japan, that is an important hedge to political risk, as a recent flare-up in tensions between the nations underscores.
