A report by the Hong Kong magazine Asia Weekly says that Japanese companies face growing risks of raw-material shortages and production stoppages after China became Japan's source of major rare-earth exports in June, when exports from China fell to zero, highlighting Japan's continued dependence on Chinese rare earths.
Hong Kong magazine Asia Weekly reported that Japan has not fully escaped its long-standing dependence on China for rare earths, and that according to an announcement issued by Chinese customs on 20 August, exports of gallium, dysprosium, terbium and yttrium to Japan were all zero in June this year. As a result, 88.2% of Japan's rare-earth-related manufacturers faced raw-material shortages or procurement difficulties, while 17.5% were forced to halt production or reduce production volumes.
Japan is also said to have pursued efforts to reduce its dependence on China following the 2010 collision off the Senkaku Islands. Measures cited include accelerating technological substitution, diversifying supply chains, strengthening stockpiling, collection and reuse, and shifting from emergency reserves toward rebuilding the industrial chain. The report also referred to Japan's independent mining of seabed rare earths near Minamitorishima. While the seabed mud contains a high proportion of medium and heavy rare earths, mining costs and the establishment of a complete manufacturing process remain challenges.
Japanese government statistics further indicate that China's share of Japan's supply was 85% in 2009 but has now fallen to around 60%. Meanwhile, the International Energy Agency has reported that China accounted for around 70% of global rare-earth production in 2024 and approximately 91% of refining capacity. The report therefore said that it would be difficult for developed countries, including Japan, to achieve independence from China in the short term.