Japan’s Finance Minister Satsuki Katayama underscored the notion of collaboration. She urged Japan, the U.S. and Europe to work together to establish a reliable supply chain of rare earths. In an interview with Nikkei on January 10, 2026, Katayama spoke of her worries regarding China’s growing control over the rare earth industry. She cautioned that, should it come to that, the country could use these rare earth metals as an economic sword.
Katayama’s dream is a market consisting of only democracies. She argues that collectively, these countries can better protect against the dangers posed by China’s dominance over rare earth materials. She pointed out that this regulatory control creates an environment of unpredictability for Japanese enterprises. Furthermore, it creates a competitive disadvantage and strategic challenge for the whole region. In an interview with director Taishu Yuasa, she stressed the necessity of collaboration. We need to have a unified front if we want to protect our supply chains and reduce our reliance on China,” she admonished.
Rare earths, which are essential components of many high-tech and green technologies, have become ever more important globally traded commodities. Katayama explained that Japan’s reliance on Chinese rare earths has been a note of concern for policymakers and industry leaders in Japan. Her advocacy for international cooperation aims to stabilize the supply chain and ensure that Japan can access these vital resources without being subjected to external pressures.
The Finance Minister’s proposal is directed to ensure securing of supplies from alternative sources. Second, it serves to stimulate next generation technologies in Japan and other allied countries. She also pointed out that a proactive approach to domestic rare earth production can make us more resilient. This dual approach will ultimately insulate us from any future economic shocks.
Here’s how Katayama described her proactive approach during her interview with us. She wants to build coalitions with like-minded countries, but increase our ability to process and recycle rare earth materials here at home. She argues this collaborative framework is in Japan’s best interest. It won’t just be the region’s triumph—it will be a model for other countries grappling with the same challenges.
According to Katayama, this underscores a growing recognition among world leaders. They understand the strategic value of rare earths in today’s geopolitical landscape. As competition heats up, especially for scarce arable land, she implores democracies to band together. Her story illustrates exactly why we need to act on this issue today.