Japan plans to boost its rare-earth stockpiles significantly

    The Japanese government will strengthen the reserve system for rare metals used in electric cars and other industrial products, SankeiBiz reported Tuesday.Japan's reserves of minor metals are now guaranteed for 60 days of domestic consumption and are set to expand to more than six months.Minor metals are essential to Japan's cutting-edge industries but are heavily dependent on rare earths from specific countries such as China.Japan imports almost all of the precious metals that its industry needs.About 60% of the rare earths needed for magnets for electric cars, for example, are imported from China.Statistics from Japan's Ministry of Economy, Trade and Industry show that in 2018, 58 percent of Japan's minor metals were imported from China, 14 percent from Vietnam, 11 percent from France and 10 percent from Malaysia.

    Kyodo news reported that Japan's current 60-day reserve system for precious metals was set in 1986.The Japanese government is prepared to adopt a more flexible approach to stockpile rare metals, such as securing reserves of more than six months for the more important metals and less important reserves of less than 60 days.To avoid affecting market prices, the government will not disclose the amount of reserves.

    Then there are the rare metals that are produced in Africa but need to be refined by Chinese companies.So the Japanese government is preparing to let Japan's Oil and Gas and metals mineral resources institutions to invest in refineries, or to promote energy investment guarantees for Japanese companies so that Japanese companies can raise funds from financial institutions.

Reuters reported that China's exports of rare earths were down about 70 per cent in July from a year earlier.Gao Feng, spokesman for China's Ministry of Commerce, said Tuesday that the coVID-19 epidemic has slowed down the production and business activities of rare earth downstream enterprises.Chinese enterprises conduct international trade in accordance with changes in international market demand and risks.Exports of rare earths fell 20.2 per cent year-on-year to 22,735.8 tonnes in the first seven months of this year, according to data released by the General Administration of Customs.