Paper: GS – II, Subject: International Relations, Topic: Global Issues, Issue: Global Strengthening Rare Earth Supply Chain.
Context:
China’s dominance in rare earths, crucial for modern industries, exposed Japan’s vulnerability after a 2010 export ban.
Key Takeaways:
| Rare Earth Elements (REE): Rare Earth Elements (REE) are a group of 17 metals in Group 3 of the Periodic Table, including the Lanthanide series, Scandium, and Yttrium. Despite their name, they are common in nature but not available enough to be easily mined. India has the fifth-largest rare earth resource, mainly in its monazite minerals. What are Rare Earth Metals? Rare Earth Metals are seventeen different metallic elements. These include the fifteen lanthanides on the periodic table, plus scandium and yttrium, which are similar to lanthanides. The seventeen rare earth elements are: Cerium (Ce) Dysprosium (Dy) Erbium (Er) Europium (Eu) Gadolinium (Gd) Holmium (Ho) Lanthanum (La) Lutetium (Lu) Neodymium (Nd) Praseodymium (Pr) Promethium (Pm) Samarium (Sm) Scandium (Sc) Terbium (Tb) Yttrium (Y) |
China’s 2010 Export Ban on Japan and Its Impact:
- Triggered by a diplomatic incident, China halted rare earth exports to Japan, which at that time relied on China for about 90% of its rare earth imports.
- The ban caused rare earth prices to increase tenfold, threatening Japan’s automotive and high-tech manufacturing sectors that rely on rare earth magnets.
Japan’s Strategic Measures to Counter the Ban:
- Swiftly created a supplemental budget exceeding $1.1 billion in October 2010 to reshore and diversify rare earth supply chains.
- Invested heavily in foreign rare earth projects, particularly Australia’s Lynas Rare Earths the largest producer outside China.
- Developed strategic partnerships through investment and supply deals involving key Japanese companies and government bodies like JOGMEC.
- Reduced China’s share in its rare earth imports to below 60%, with targets to go even lower.
India Rare Earths Exposure and Strategic Response:
Japan strengthened its rare-earth security through diversification, innovation, recycling, and stockpiling an approach India should emulate to reduce dependence on China and ensure reliable access to critical minerals.
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