Highlights
- Japan and France collaborate on a €200M investment in Carester’s rare-earth refining and recycling project launching in 2026.
- The initiative aims to diversify rare-earth supply chains away from China’s current global dominance.
- Project will produce 590 tonnes of dysprosium and terbium annually.
- Secures approximately 20% of Japan’s future rare-earth demand.
Japan is making a strategic move to secure its rare-earth supply chain by investing €100 million ($109 million) in a French refining and recycling project led by Carester (opens in a new tab). This initiative, backed by France with equal subsidies and tax incentives, aims to reduce reliance on China, which dominates the global rare-earth refining industry. Through the Japan Organization for Metals and Energy Security, Tokyo has signed a long-term supply deal for dysprosium and terbium, two critical elements in high-performance EV magnets, securing about 20% of Japan’s future demand.
Carester’s plant in southwestern France, set to launch in late 2026, will refine raw ore and recycle rare earths from EV magnets and used components—a crucial step for resource-scarce nations like Japan and France, reports Nikkei Asia (opens in a new tab).
The company has also inked a supply agreement with automaker Stellantis, (opens in a new tab) ensuring a steady market for its annual output of 590 tonnes of dysprosium and terbium. This investment aligns with a 2023 Japan-France roadmap to expand cooperation in critical minerals, reinforcing Europe and Japan’s efforts to diversify rare-earth refining capabilities beyond China’s control.
Various nations are now working furiously on multiple fronts to develop “ex” China supply chains. How will state-backed firms in China counter this?
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