Japan Secures Sole Non‑Chinese Heavy Rare Earth Supply

Sojitz Corporation has begun importing dysprosium and terbium from Lynas Rare Earths, establishing the only operational heavy rare earth (HRE) supply chain outside China.

The HREs originate at Lynas’ Mt. Weld mine in Australia and are separated and refined in Malaysia, with Japan’s JARE vehicle—co-owned by Sojitz and JOGMEC—having financed Lynas’ capacity expansion and gained preferential rights to Dy and Tb. That strategic investment, decades in the making, aims to guarantee feedstock for Japan’s automotive, robotics and defense sectors that rely on high‑temperature NdFeB magnets.

For now, Lynas remains the sole commercial non‑Chinese source. U.S. and European efforts to commercialize domestic Dy/Tb processing, including projects by MP Materials, are still nascent and likely years from matching Lynas’ operational pipeline.

Analysts caution that Lynas’ industrial ramp is early-stage and output volumes are undisclosed; Malaysia’s regulatory environment and any operational hiccups could affect throughput. Japan’s long-term offtake rights intensify competition for remaining Western options and raise the bar for policymakers in Washington and Brussels seeking HRE resilience by 2030.

The development reshapes rare‑earth geopolitics by placing a critical HRE anchor in Japan, while leaving Western alternatives under time pressure.