While Tokyo has aligned itself with partners such as the US, Australia and India to reduce reliance on Chinese rare earths, analysts caution that Beijing continues to dominate the supply chain, particularly in refining of rare-earth elements (REEs), where it holds over 90% of global capacity.
Japan’s vulnerability was underscored following the 2010 export embargo by China, which catalyzed efforts to diversify sourcing. Recent trade data shows that Japan has significantly increased rare-earth imports from India and Southeast Asia, yet concerns persist about long-term supply security, as India aims to conserve its current rare-earth reserves.
