Highlights

• Sojitz Corporation has begun importing dysprosium and terbium from Lynas Rare Earths, marking the world's only operational heavy rare earth supply chain outside China's control.
• Japan has secured exclusive rights to Lynas' heavy rare earth production through decades of strategic investment via JARE, a joint venture between Sojitz and JOGMEC, ensuring supply for its automotive and robotics industries.
• The U.S. and Europe now face intensified competition for HRE independence as Japan locks up the sole non-Chinese source, with MP Materials' capabilities still years away from commercial viability.

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In a largely overlooked yet geopolitically consequential development last month, Sojitz Corporation (opens in a new tab) confirmed late last month it has begun importing heavy rare earths (HREs)—specifically dysprosium (Dy) and terbium (Tb)—from Lynas Rare Earths Ltd. in Australia. While MP Materials is building a facility to process SEG (samarium–europium–gadolinium) under its Phase 1 award with the U.S. Department of Defense—and has signaled that Dy/Tb extraction may eventually be possible—the capability remains unproven and likely some years away.

America’s heavy rare earth resources are substantial, but the infrastructure, chemistry, and throughput needed to turn them into usable Dy/Tb are still in early development. For now, Lynas remains the only operational non-Chinese source of commercial heavy rare earths, and the Japanese have much of that product locked up via Sojitz Corporation.

This is not just another materials shipment. It marks the only commercial heavy rare earth supply chain outside the People’s Republic of China, the sole producer for nearly three decades.

Sojitz’s announcement confirms that Lynas has now begun exporting HREs mined at Mt. Weld (Australia) and separated/refined in Malaysia, bringing online the first alternative to China’s near-total monopoly over materials essential for high-temperature NdFeB magnets. This is history in the making for anyone tracking magnet metals, industrial policy, Western supply-chain resilience—and the narrowing options for countries seeking Dy/Tb independence.

Why Heavy Rare Earths Matter More Than Ever

Heavy rare earths—especially Dy and Tb—are the thermal backbone of high-performance permanent magnets used in EV traction motors, industrial automation, aerospace platforms, and defense systems. Without them, magnets demagnetize when exposed to heat.

China has long controlled ~98–100% of global HRE separation, and recent geopolitical friction has only highlighted the fragility of this arrangement. Lynas’ industrial-scale move disrupts that landscape.

For Japan—a nation whose automotive and robotics industries depend on reliable magnet-grade oxides—this diversification is not optional. It is existential.

A Partnership Decades in the Making

Sojitz’s involvement with Lynas stretches back to the 1960s through its predecessor, Nissho Iwai, and deepened in 2011 through an exclusive distribution agreement in Japan.

Most importantly:

• JARE—a joint special-purpose vehicle between Sojitz and JOGMEC—has pumped equity and loans into Lynas for over a decade.
• A dedicated 2023 agreement secured Japanese rights to dysprosium and terbium, triggering Lynas’ acceleration of HRE production capacity.

The October 2025 import is the strategic payoff.

What’s Accurate—and What Investors Should Watch

The Sojitz release is factually sound: the Dy/Tb supply from Mt. Weld ore represents the world’s only operating non-Chinese heavy rare earth pipeline.

However, investors should note the following:

• “Industrial-scale production” from Lynas remains in early ramp-up; volumes are not disclosed.
• Malaysia’s regulatory environment continues to evolve—an external risk that could impact HRE throughput.
• Japan’s deepening financial stake underscores confidence, but also the lack of Western alternatives, reinforcing Lynas’ geopolitical importance rather than pure commercial optionality.

No misinformation detected—just understated geopolitical significance.

Why This Matters for the Rest of the World

For the United States and Europe—both scrambling to establish magnet metal independence—this serves as a reminder:

There is still only one free-world material-heavy rare earth supply chain, and Japan just secured first rights.

If Washington and Brussels want HRE resilience by 2030, they are now competing with an entrenched Japanese anchor tenant. Lynas just became more strategic than ever. The pressure is now on MP Materials to deliver in a tight timeline.

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