Tokyo, Japan – Sojitz Corporation is expanding its sourcing of rare earth elements from Australia, a move aimed at diversifying Japan’s supply chain and reducing its reliance on China. The Japanese trading house will begin importing samarium, a crucial component in permanent magnets, in April, and plans to add up to six medium to heavy rare earth elements to its portfolio by mid-2027.
This expansion builds on Sojitz’s initial foray into Australian rare earth imports, which began in October 2025. That initial step marked the first time Japan had procured these critical materials from a source outside of China. The current initiative represents a significant escalation of those efforts, signaling a deepening commitment to securing a more resilient supply of these strategically important minerals.
The rare earths will be sourced from Lynas Rare Earths’ Mount Weld mine in Western Australia. Sojitz has previously invested in Lynas, both through loans and equity investments, demonstrating a long-term strategic partnership. The company’s commitment extends beyond financing; it has also secured supply agreements for dysprosium and terbium, two heavy rare earths vital for the production of neodymium permanent magnets.
The move comes as global concerns grow over the concentration of rare earth production in China, which currently dominates the market. Rare earth elements are essential for a wide range of modern technologies, including electric vehicles, wind turbines, and industrial robots. Disruptions to the supply chain, whether due to geopolitical tensions or export restrictions, could have significant consequences for these industries.
According to industry analysts, the demand for heavy rare earths, such as dysprosium and terbium, is particularly strong due to their use in high-performance magnets. The growth of the electric vehicle and renewable energy sectors is driving this demand, making access to secure and reliable supplies even more critical. The investment by Sojitz and the Japan Metal and Energy Security Organization (JOGMEC) – totaling approximately A$200 million (roughly $134.7 million USD) through Japan Australia Rare Earths – is expected to meet around 30% of Japan’s demand for these heavy rare earths.
Sojitz’s history with rare earths dates back to the 1960s, and the company has been a distributor of Lynas’ light rare earth products in Japan since 2011. This latest move represents a natural progression of that relationship, expanding into the more strategically important heavy rare earth segment. The company aims to continue diversifying the rare earths supply chain and contribute to the stable supply of these essential materials for Japanese industries.
The diversification strategy isn’t limited to Australia. Japan is also exploring other avenues for securing rare earth supplies, including plans to begin extracting rare earths from deep-sea sources as early as next year. These multifaceted efforts underscore the country’s determination to reduce its dependence on a single supplier and build a more resilient and secure supply chain for these critical minerals.
The competition for rare earth resources is expected to intensify as countries around the world seek to secure their access to these vital materials. China’s historical dominance in both mining and processing, particularly its expertise in acid extraction techniques, has given it a significant advantage. However, the increasing investment in overseas projects, like the one with Lynas, suggests a growing effort to challenge that dominance and create a more balanced global market.
Sojitz’s initiative is not merely a commercial venture; it’s a strategic response to evolving geopolitical realities and the growing importance of supply chain security. By investing in Australian rare earth production and diversifying its sourcing, Japan is taking concrete steps to safeguard its access to the materials essential for its future economic growth and technological innovation.
The expansion into samarium imports specifically addresses a key need for permanent magnet production. Samarium-cobalt magnets are known for their high temperature stability and resistance to corrosion, making them ideal for use in demanding applications such as aerospace and automotive industries. Increasing the availability of samarium will support the growth of these sectors within Japan.
The long-term implications of this move extend beyond Japan. It could encourage other countries to pursue similar diversification strategies, potentially leading to a more competitive and resilient global rare earth market. The success of the Sojitz-Lynas partnership will likely serve as a model for future collaborations aimed at securing critical mineral supplies.
