According to a report by the Japan Keizai News on August 3rd, a recent survey in Japan shows that 80% of senior executives consider concerns over rare earth procurement to be 'important business issues' or 'major risks affecting business sustainability'.
The report suggests that this once again highlights the sense of crisis among Japanese companies regarding the strategically important materials needed for the production of high-tech products.
Surveys show that 400 executives from manufacturing companies, including those in the materials and components industry, responded. Of these, 43.8% considered procurement anxiety to be an operational issue, 36.2% considered it a risk, and 16% considered it a “moderate issue”. Only 4% did not consider it a problem at all. Additionally, 45% also viewed “too high dependence on China” as a problem.
41.7% of respondents answered “will significantly worsen” or “will slightly worsen” regarding the procurement prospects for the next year; while 17% believe "will significantly improve" or "will slightly improve."
Most respondents indicated that they have difficulties obtaining rare earths. Neodymium and samarium, which are used in the manufacture of magnets, were frequently mentioned.
They staged a "victim" act, citing China's recent tightening of rare earth export controls on Japan, without mentioning the Japanese government's actions.
In November last year, tensions between China and Japan escalated. As soon as Kaesuke Moei took office, she made remarks about a possible “Taiwan crisis,” and she also engaged in frequent military maneuvers. The Chinese side has taken several measures in response.
According to a previous report by Nikkei Asia, China announced in January this year that it would strengthen controls on the export of 'dual-use items to Japan', thereby increasing economic pressure on Japan. Especially in March and April of this year, China’s exports of rare earths to Japan plummeted by more than 80% compared to the same period in previous years. This has forced Japanese companies to urgently seek alternative supply sources in countries like Australia and India.
However, finding alternative solutions is not easy. A senior executive from a large Japanese manufacturer expressed concerns: "If this situation continues, domestic production in Japan will be disrupted, and factories may be forced to shut down."
