China strong-armed Japan over rare earths. It’s a lesson for the U.S.

illuminem summarises for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:

🗞️ Driving the news: The U.S. is confronting China’s strategic leverage over rare-earth mineral exports, a challenge Japan faced as early as 2010
•  Following a territorial dispute that year, Beijing halted rare-earth exports to Japan, prompting Tokyo to invest heavily in alternative supply chains — particularly in Australia
•  Despite these efforts, Japan still found itself vulnerable during China’s renewed export restrictions in 2025

🔭 The context: Rare earths are critical for advanced electronics, defense systems, and clean energy technologies
•  China dominates global rare-earth production and processing, giving it substantial geopolitical leverage
•  Japan’s 2010 experience led to long-term diversification efforts, including partnerships with Australian firm Lynas Rare Earths Ltd., but full supply chain resilience remains elusive

🌍 Why it matters for the planet: Securing rare-earth supplies is essential for scaling green technologies like electric vehicles and wind turbines
•  China’s ability to restrict access underscores global supply chain fragility and the need for resilient, transparent, and diversified critical mineral sourcing
•  Delays in addressing these gaps could slow clean energy transitions and increase geopolitical tensions around resource access

⏭️ What's next: The U.S., Japan, and allies are expected to accelerate rare-earth diversification strategies, including new mining projects, processing facilities, and strategic stockpiles
•  The U.S. may strengthen cooperation with Australia, Canada, and the EU, while bolstering domestic capabilities through policy incentives and public-private investments
•  Timeline-sensitive projects—like the Inflation Reduction Act’s clean tech goals — depend heavily on securing these critical inputs

💬 One quote: “Japan prepared for the next rare-earth shock, but it still wasn’t enough. The U.S. should take note,” said Yoko Kubota, reporting for The Wall Street Journal

📈 One stat: China currently accounts for over 85% of global rare-earth refining capacity, according to the International Energy Agency

Explore carbon credit purchases, total emissions, and climate targets of thousands of companies on Data Hub™ — the first platform designed to help sustainability providers generate sales leads!

Click for more news covering the latest on energy sources and public governance