Japan’s Strategy for Critical Mineral Procurement: Navigating the Future of High-Tech Industries

Japan, a nation with scarce natural resources, has long recognized the importance of securing stable supplies of critical minerals essential for its high-tech industries, including electric vehicles, electronics, and renewable energy technologies. The country’s approach to ensuring a steady flow of these materials is all-rounded, involving international partnerships, investment in alternative technologies, and domestic initiatives.

A bulldozer moves lithium ore at a mine. Photographer: Dado Galdieri/Bloomberg

An important aspect of Japan’s strategy is its international collaborations and investments aimed at securing supplies of rare earth elements and other critical minerals. Particularly, the Lynas Corporation’s rare earth processing plant in Malaysia represents a significant part of this strategy. Lynas, an Australian company, has developed one of the largest outside-China rare earths supply chains, and Japan has been a key investor, seeking to diversify its sources and reduce reliance on China, which dominates the global rare earth market.

Another example is the Olaroz Lithium Facility in Argentina, where Japanese companies are involved in lithium production. Lithium is crucial for battery technology, particularly for electric vehicles, a market that Japan aims to lead. By investing in lithium resources abroad, Japan ensures a more stable and diversified supply chain, essential for its automotive and electronics industries’ growth.

Japan is also pioneering in developing alternative technologies that reduce reliance on rare and critical minerals. Japanese companies have been at the forefront of developing motors that minimize the use of rare earth elements.

For instance, Honda has developed a new motor for hybrid vehicles by collaborating with Daido Steel, a Japanese company. Through these joint development efforts, the two companies achieved, for the first time in the world, a practical application of a neodymium magnet which contains absolutely no heavy rare earth yet has high heat resistance and high magnetic performance suitable for use in the drive motor of hybrid vehicles. This innovation not only mitigates the risk associated with supply constraints and geopolitical tensions but also aligns with global sustainability goals.

On the recycling front, Japan has been a pioneer in establishing advanced recycling facilities that efficiently recover rare earth metals and other valuable materials from electronic waste. The country’s efforts are illustrated by the establishment of the Urban Mine Platform, which catalogues metals stored in discarded electronics throughout the country.

Advancements in battery technology are another area where Japan is making significant growth. Japanese researchers and companies are working on developing batteries that use more abundant materials, moving away from rare metals and towards alternatives like sodium-ion or silicon-based batteries. Nippon Electric Glass Co., Ltd. has developed the world’s first all-oxide, all-solid-state sodium ion secondary battery. This innovation uses glass ceramic materials for both electrodes and the solid electrolyte, eliminating the need for rare metals and enhancing safety. The battery, comparable in performance to existing lithium-ion batteries, aims to contribute to a carbon-free society by using abundant and safe resources. These developments could revolutionize the energy storage sector and reduce the environmental impact associated with mining and processing critical minerals.

These initiatives are part of Japan’s broader strategy to create a circular economy, reducing the need for new mining and lowering the environmental footprint of its manufacturing sectors.

Domestically, Japan is strengthening its capabilities in critical mineral procurement through initiatives led by the Japan Oil, Gas and Metals National Corporation (JOGMEC). JOGMEC plays a crucial role in supporting exploration, development, and acquisition of mineral resources both domestically and internationally. It provides financial and technical support to ensure Japan’s long-term energy and mineral security. JOGMEC has been actively involved in exploring for rare earth elements within Japan’s own territory, particularly focusing on the seabed around the Japanese islands. One significant discovery includes the vast deposits of rare earth minerals found in the seabed of the Pacific Ocean, near Minamitorishima Island. These deposits are believed to contain over 16 million tons of rare earth oxides, potentially enough to supply the world on a “semi-infinite” basis, according to researchers. To exploit these resources efficiently, JOGMEC and other Japanese entities have invested in developing advanced deep-sea mining technologies and environmentally friendly extraction techniques.

In contrast, China controls about 60-70% of the world’s rare earth mineral production and possesses significant reserves of these minerals. The country’s control extends beyond extraction to include the entire supply chain, including processing and manufacturing of end products that utilize these minerals. Japan’s discovery of over 16 million tons of rare earth minerals in the seabed near Minamitorishima Island represents a strategic shift towards self-sufficiency and a reduction in reliance on Chinese imports. This undersea reserve opens a new frontier in mineral extraction, contrasting with China’s land-based reserves. The success in mining these seabed minerals could pioneer deep-sea mining techniques and alter global supply chains for critical minerals.