The affected materials would be the same seven elements that China restricted in April in response to the trade war launched by the US. Since 2010, when China banned rare earths supplies to Japan as part of a territorial dispute, Tokyo has made some progress in building up a supply chain outside China. In particular, the Japanese government and industry bankrolled the expansion of Australia’s Lynas Rare Earths Ltd, one of the few Western miners and processors of the minerals. In 2024, a former minister told Bloomberg that Japan’s dependence on China for the full suite of 17 rare earths had fallen to 60% from 80%-90%. The threat to expand restrictions to civil customers once again highlights how so-called heavy rare earths, used as essential ingredients in powerful magnets, remain a key pressure point.

Source: The Edge Markets January 07, 2026 06:02 UTC