Mitigating supply risks through involvement in rare earth projects: Japan's strategies and what the US can learn

摘要

Rare Earth Elements (REE) are crucial for future technologies. However, their production is concentrated in China and this country's dominant market position leads to recurring supply risks. Japan was affected by supply disruptions a decade ago. Since then, Japan has been actively trying to secure its supply through rare earth (RE) mine projects outside of China in order to reduce its dependence on China. Based on an analysis of market developments and the activities of Japan in recent years, lessons learned are applied to the US, which is currently facing similar uncertainties. Conclusions lead us to question whether supporting new RE mine projects is the best strategy for the US to mitigate potential supply disruptions.