China's exports of rare-earth magnets to Japan increased by 9.7% year-on-year in the January-February period, reaching 443 metric tons [1]. However, a Japanese government official noted that shipments of heavy rare-earth elements, such as dysprosium, have decreased due to China's dual-use export controls [1]. These controls restrict the export of materials that could be used for both civilian and military purposes, resulting in a decline in the availability of heavy rare earths needed for high-performance magnets [1].
Japanese manufacturers, particularly those involved in advanced technologies like electric vehicles and wind turbines, are facing challenges in securing supplies of heavy rare-earth elements [1]. In response, some companies are developing magnets without heavy rare earths, exploring recycling initiatives, and seeking supply agreements with other countries [1]. The Japanese government is also working to reduce reliance on China by providing rare-earth refining technology to Malaysia and subsidizing rare-earth recycling efforts [1].
Industry groups have described China's export curbs as a 'global challenge,' urging international cooperation to ensure stable supplies of critical minerals [1]. Rare-earth prices have experienced volatility, with record highs reported amid China's export controls against Japan [1]. This price volatility has eroded profits for Chinese rare-earth miners, who are facing headwinds in the current market environment [1].
CONCLUSION
While China's rare-earth magnet exports to Japan have risen, the tightening of heavy rare-earth element shipments poses significant supply chain risks for Japanese manufacturers. The Japanese government and industry are actively seeking alternatives and international cooperation to mitigate these risks. Price volatility and export controls continue to impact both Japanese manufacturers and Chinese rare-earth miners, underscoring the global importance of stable rare-earth supplies.