The following is from a tweet by Yoichi Takahashi (Kaetsu Univ.) I just discovered it.
Yoichi Takahashi (Kaetsu Univ.)
@YoichiTakahashi
Japan's solution.
China "embargoes" rare earth magnet technology?
Japan may compensate for the U.S. weakness in securing suppliers, refining, and processing.
EV Review and HV Reinstatement as Opportunity
https://zakzak.co.jp/article/20230412-TV6HT5Z7EZPVRCJSMSNSZOCD6U/
@zakdesk
from
It has become clear that the Chinese government is considering an export ban on technology related to the manufacture of high-performance rare earth magnets used in high-tech products.
The Chinese government's list of banned and restricted export technologies will include export restrictions on technologies for rare earth smelting and processing.
Speaking of rare piles of earth, one may recall that when Japan and China were at odds over the Senkaku Islands in Okinawa in 2010, the Chinese side temporarily suspended exports to Japan.
The government and Japanese companies took measures such as:
- Securing procurement sources outside of China.
- Promoting the reuse of rare piles of earth domestically.
- Developing technologies for resource conservation and alternative raw materials.
As a result, the volume of rare earth imports from China was halved, and the dependence on China for imports dropped from 80% to 50%.
Rare earth prices plummeted, and some Chinese companies were forced to halt production.
Japan did an excellent job of securing rare earth raw materials quickly.
Furthermore, under the administrations of Shinzo Abe and Yoshihide Suga, measures were taken to enable refining and processing, which had been carried out overseas outside of China, to be done in Japan, and considerable preparations have been made.
Meanwhile, the U.S. has reduced its dependence on China for rare earth production from 90% to 70% for its mine development.
However, much of the rare piles of earth produced in its own country are exported to China, where they are refined locally before being imported.
Japan excels in producing high-performance magnets that use rare piles of earth, and it has some prospect of securing rare earth as raw materials by procuring them from sources other than China or reusing them.
The U.S. excels in high-tech products that use high-performance magnets, but it has a weak point in that it depends on China for rare earth refining.
The purpose of this measure is likely for China to compete with the United States.
In this regard, Japan, which has made preparations against rare piles of earth, may be able to compensate for the U.S. weakness.
Rare earth is attracting attention because electric vehicles (EVs), for example, require drive motors with powerful magnetic forces, for which rare earth is indispensable.
Fortunately, Japan has already developed drive motors for hybrid vehicles without rare earth.
If China plants rare earth to fight for supremacy in EVs, it should change part of its global EV strategy to HVs.
Why not review EV strategies in Japan and the U.S. and consider allowing HVs without rare earth as a countermeasure against China, just as the European Union has made an exception for sales of engine vehicles that use synthetic fuel "e-fuel"?
The logic is that China's rare earth production and refining are causing significant environmental destruction, and a rare earth-free hybrid by Japan would contribute to the environment.
The shift from HVs to EVs was originally the strategy of European and U.S. auto companies.
China joined in,
Now that economic security has become more critical, we should consider this an opportunity to rethink our EV strategy from this perspective.
A pinch is indeed an opportunity.
(Yoichi Takahashi, former cabinet counselor and professor at Kaetsu University)
