Sojitz Corp. has taken delivery of heavy rare earths from Australia’s Lynas Rare Earths Ltd., the trading house said Wednesday, marking Japan’s first receipt of these minerals processed outside China.
The shipment includes dysprosium and terbium — elements critical to electric vehicle motors and industrial robotics — extracted from Lynas’s Mt. Weld mine in Western Australia and refined at its Malaysian facility. The delivery comes two days after Washington and Tokyo formalized a rare earths cooperation framework designed to counter Beijing’s dominance in processing, which exceeds 90% of global capacity.
Sojitz has backed Lynas financially since 2011 through Japan Australia Rare Earth, a joint venture with state-backed Japan Organization for Metals and Energy Security. The partnership secured supply agreements for these heavy rare earths in March 2023, ahead of Lynas’s commercial production that began in May.
Japan remains dependent on China for roughly 60% of its rare earth imports, down from over 90% following Beijing’s 2010 export restrictions that disrupted the country’s automotive sector. While Wednesday’s delivery represents progress in diversifying sources, industry observers note that establishing commercially viable alternatives remains costly and time-consuming.
The trading house said it aims to further diversify Japan’s critical minerals supply chain, though it provided no volume figures or financial details for the arrangement.
