– China holds an influential position in the supply chains of rare earths needed for green technologies
– Japan needs to broaden its energy security concept to include green technologies and critical minerals
– China has a strong grip on the supply chains of critical minerals, with control in extraction and processing, especially in EVs and batteries.
China plays a significant role in the supply chains of rare earths crucial for green technologies, giving them influence in the market. Japan, known for its energy security concerns, must now broaden its concept of energy security to include green technologies and critical minerals. This shift is essential for ensuring access to clean energy technologies and critical minerals like rare earths.
In 2010, Japan faced an embargo of rare earths from China, showing the potential weaponization of critical inputs. China still holds a strong grip on the supply chains of critical minerals, with control over extraction and processing. This control extends to key components in technologies like electric vehicles and batteries.
China’s industrial policies have established a global presence in the extraction of critical minerals, giving them significant control over the entire value chain. This dominance in the supply chains poses challenges for countries like Japan, highlighting the importance of diversifying sources of critical minerals and green technologies to ensure energy security.