Japan Faces Heavy Rare-Earth Shortage as China Curbs Supply

Japanese manufacturers are facing a severe shortage of heavy rare-earth elements that is expected to persist until at least 2027 as demand still outstrips Japan’s supply chain diversification efforts, according to a recent analysis by commodity pricing agency Argus.

The Aug. 17 report noted that domestic manufacturers can currently secure only about two-thirds of their required rare-earth supply, largely because alternative projects backed by the Japan Organization for Metals and Energy Security (JOGMEC) will take one to two years to reach large-scale production.