Full Breakdown
Japan and France Forge Rare Earths Partnership Amidst China Dependency
4/1/2026, 11:08:37 AM
Strategic Diversification of Rare Earths Supply
On April 1, 2023, Japanese Prime Minister Sanae Takaichi and French President Emmanuel Macron announced plans to establish a roadmap aimed at diversifying supplies of rare earths and other critical minerals. This initiative is a response to growing concerns over export restrictions imposed by China, which currently dominates the global rare earths market. The two nations intend to launch a public-private project in southwestern France by the end of the year, focusing on refining heavy rare earths essential for electric vehicle motors and various technologies.
The collaboration reflects a broader effort among Japan and Western governments to reduce reliance on China for critical mineral supplies. Earlier in March, Japan Australia Rare Earths, co-owned by the Japan Organization for Metals and Energy Security and Sojitz Corp, secured an agreement with Australia’s Lynas Rare Earths, which will allocate 75% of its heavy rare earth oxide output to Japan.
Japan's Deep-Sea Mining Initiative
In parallel, Japan is advancing its deep-sea mining project near Minamitorishima in the Ogasawara Islands as a potential solution to its rare earth dependency. This initiative has garnered political attention, particularly following the retrieval of seabed mud from depths of 6,000 meters, which Takaichi hailed as a significant breakthrough for Japan's economic security. However, critics argue that this project may serve more as a political maneuver than a viable industrial strategy, given the high costs and technological challenges involved.
Projections indicate that the cost of extracting and refining rare earths from the seabed could reach $70,000 per ton, significantly higher than the market price of Chinese-processed rare earths. This disparity raises questions about the economic feasibility of the initiative, with some commentators likening Japan's pursuit of self-sufficiency to historical military failures characterized by logistical impracticality.
Criticism and Concerns
Critics highlight that despite Japan reducing its reliance on Chinese rare earths from over 90% to approximately 60-70% since 2010, it still depends heavily on Chinese facilities for processing and refining critical heavy rare earths. This residual dependency poses risks to Japan's electric vehicle industry and broader industrial base, potentially undermining national security.
Moreover, the political implications of the deep-sea mining project may create a moral hazard, discouraging investment in more pragmatic alternatives such as urban mining or partnerships with resource-rich nations like Australia and Vietnam. If the feasibility tests scheduled for 2027 fail to meet expectations, Japan could face a credibility gap that weakens its negotiating position with China.
Official Statements & Responses
Both Takaichi and Macron have expressed their commitment to enhancing cooperation in critical minerals and space technology. The joint statement from their meeting emphasizes the urgency of addressing export restrictions on critical minerals and the need for a diversified supply chain.
Verbatim Quotes
- “Japan will not have trouble with rare earths from now on, both for the current generation and the next generation,” — Sanae Takaichi, Prime Minister of Japan
- “Analysis of the amount of rare earths contained in the mud is yet to be completed. The technology is still at the stage of demonstrating that it is possible to continuously pull up mud from the deep sea.” — Mainichi Shimbun
Conclusion
As Japan and France embark on this partnership to secure rare earth supplies, the effectiveness of Japan's deep-sea mining initiative remains uncertain. The interplay of political ambition and economic reality will be crucial in determining the success of these efforts to reduce dependency on China and bolster national security.
