· 2 min read
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
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