Japan is set to make a significant investment in a French rare-earth refining and recycling project, marking a strategic move to decrease its reliance on China for essential industrial metals. The investment, valued at approximately 100 million euros, or $109 million, will be channeled through the Japan Organization for Metals and Energy Security. This initiative has been confirmed by the Ministry of Economy, Trade and Industry.
The project, orchestrated by the French company Carester, is located in France and aims to refine and recycle rare-earth metals. These metals are crucial components in the production of electric vehicles and other advanced technologies. The investment signifies Japan's commitment to securing a stable supply of these vital resources, which are pivotal for the country's technological advancements.
The collaboration between Japan and France is expected to strengthen bilateral ties while addressing the strategic necessity of diversifying sources of industrial metals. By investing in this project, Japan seeks to mitigate the risks associated with over-dependence on China, which currently dominates the global supply chain for rare-earth elements.
The financial commitment from Japan underscores the project's importance, highlighting its potential to contribute significantly to the stability and sustainability of the industrial metal supply. This move is part of Japan's broader strategy to fortify its economic security and support its industries, particularly in the rapidly growing electric vehicle sector.