Japan takes first stake in heavy rare earths to reduce China reliance

Sojitz, JOGMEC aim to fill 30% of domestic demand in deal with Australian miner

A heavy rare-earth mine at Mount Weld in Australia. Japan is investing in operations here to secure supplies of the materials. (Photo courtesy of Lynas Rare Earths)

MAMORU TSUGE and SHOYA OKINAGA, Nikkei staff writers

March 9, 2023 02:30 JST

TOKYO -- Japan has acquired its first interest in heavy rare-earth elements, which are essential for magnets used in electric vehicle motors, in a step toward weaning off a reliance on China, the world's top producer.

Japanese trading house Sojitz and the Japan Organization for Metals and Energy Security (JOGMEC) will invest approximately 200 million Australian dollars ($134.7 million) in Australia's Lynas Rare Earths by the end of March through Japan Australia Rare Earths, a joint venture set up by the two Japanese entities, Sojitz said in a statement Tuesday.