Japan aims to reduce rare earth metal dependency

Feb 28th, 2011

The Japanese government wants to reduce its reliance on the rare earth metal supplies from China .

According to business daily The Nikkei , the government and private sector plans to invest Y110billion in reducing its dependency with Japan  currently importing 90 per cent of its rare earth metals  from China .

Its first step sees the Ministry of Economy, Trade and Industry select 160 projects by 110 companies to diversify the procurement sources. It plans to boost subsidies further and solicit more companies and projects to apply for them.

The projects will be spread over several categories including reducing rare-earth metal use, boosting recycling, and testing parts made by non-Chinese rare earths.

To assess the performance changes, Toyota , Honda  and Nissan , as well as other manufacturers, plan to set up testing facilities.