TOKYO — The cost of procuring rare earths for Japanese companies has surged by more than 20% compared to last year, according to a recent private-sector survey. This increase is attributed to export controls imposed by China, which supplies an average of 61% of the rare earths imported by Japanese firms.

The survey also found that 1 out of 10 Japanese companies are unable to pass on these additional costs to their customers, highlighting the financial strain caused by the tightened export restrictions.

These developments underscore the growing impact of China’s policies on the rare earth supply chain in Asia and the challenges faced by Japanese businesses reliant on these critical materials.

Sources