Japan’s key rare earth imports plunge 80% in H1

Summary

Japan's imports of key rare earths slumped 80 percent in the first half of this year, as Chinese export controls took effect. Ministry of Finance data show dysprosium-iron alloy imports fell 82 percent year on year to just 13 tonnes, while yttrium oxide imports dropped 74 percent to 204 tonnes. China imposed export controls on seven categories of medium and heavy rare earths in April 2025.

Japan has sought alternative supplies from the United States, Australia and Vietnam, but these have yet to guarantee supply, and there is no quick fix.

Commentary

Japan's first-half imports of dysprosium-iron alloy fell 82 percent and yttrium oxide 74 percent after China's April controls, while prices for dysprosium and terbium rose four to five times and yttrium once surged 140-fold. With 90 percent of global rare earth separation capacity in China, Japan's shift to purchases from the US, Australia and Vietnam is unlikely to close the supply gap. New Zealand small and medium enterprises involved in new-energy motors and electronic products need to guard against cost pass-through.

Lynas's expansion may offer mining services subcontracting, but refining still cannot bypass China, and supply-chain diversification is premature.

Keywords: rare earths, export controls, Japan, import volume, dysprosium-iron alloy, yttrium oxide, alternative supply, China, price surge

Source: Global Times