IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v63y2019ic33.html
   My bibliography  Save this article

Mitigating supply risks through involvement in rare earth projects: Japan's strategies and what the US can learn

Author

Listed:
  • Schmid, Marc

Abstract

Rare Earth Elements (REE) are crucial for future technologies. However, their production is concentrated in China and this country's dominant market position leads to recurring supply risks. Japan was affected by supply disruptions a decade ago. Since then, Japan has been actively trying to secure its supply through rare earth (RE) mine projects outside of China in order to reduce its dependence on China. Based on an analysis of market developments and the activities of Japan in recent years, lessons learned are applied to the US, which is currently facing similar uncertainties. Conclusions lead us to question whether supporting new RE mine projects is the best strategy for the US to mitigate potential supply disruptions.

Suggested Citation

  • Schmid, Marc, 2019. "Mitigating supply risks through involvement in rare earth projects: Japan's strategies and what the US can learn," Resources Policy, Elsevier, vol. 63(C), pages 1-1.
    • Handle: RePEc:eee:jrpoli:v:63:y:2019:i:c:33
    DOI: 10.1016/j.resourpol.2019.101457
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420719301667
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2019.101457?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. T. E. Graedel & Barbara K. Reck, 2016. "Six Years of Criticality Assessments: What Have We Learned So Far?," Journal of Industrial Ecology, Yale University, vol. 20(4), pages 692-699, August.
    2. Xiaoyue Du & T. E. Graedel, 2011. "Global Rare Earth In‐Use Stocks in NdFeB Permanent Magnets," Journal of Industrial Ecology, Yale University, vol. 15(6), pages 836-843, December.
    3. Moss, R.L. & Tzimas, E. & Kara, H. & Willis, P. & Kooroshy, J., 2013. "The potential risks from metals bottlenecks to the deployment of Strategic Energy Technologies," Energy Policy, Elsevier, vol. 55(C), pages 556-564.
    4. Rabe, Wiebke & Kostka, Genia & Smith Stegen, Karen, 2017. "China's supply of critical raw materials: Risks for Europe's solar and wind industries?," Energy Policy, Elsevier, vol. 101(C), pages 692-699.
    5. Mancheri, Nabeel A., 2015. "World trade in rare earths, Chinese export restrictions, and implications," Resources Policy, Elsevier, vol. 46(P2), pages 262-271.
    6. Hoenderdaal, Sander & Tercero Espinoza, Luis & Marscheider-Weidemann, Frank & Graus, Wina, 2013. "Can a dysprosium shortage threaten green energy technologies?," Energy, Elsevier, vol. 49(C), pages 344-355.
    7. N.T. Nassar & Xiaoyue Du & T.E. Graedel, 2015. "Criticality of the Rare Earth Elements," Journal of Industrial Ecology, Yale University, vol. 19(6), pages 1044-1054, December.
    8. Barteková, Eva & Kemp, René, 2016. "National strategies for securing a stable supply of rare earths in different world regions," Resources Policy, Elsevier, vol. 49(C), pages 153-164.
    9. Paulick, Holger & Machacek, Erika, 2017. "The global rare earth element exploration boom: An analysis of resources outside of China and discussion of development perspectives," Resources Policy, Elsevier, vol. 52(C), pages 134-153.
    10. Smith Stegen, Karen, 2015. "Heavy rare earths, permanent magnets, and renewable energies: An imminent crisis," Energy Policy, Elsevier, vol. 79(C), pages 1-8.
    11. Nieto, Antonio & Guelly, Kirsten & Kleit, Andrew, 2013. "Addressing criticality for rare earth elements in petroleum refining: The key supply factors approach," Resources Policy, Elsevier, vol. 38(4), pages 496-503.
    12. Packey, Daniel J. & Kingsnorth, Dudley, 2016. "The impact of unregulated ionic clay rare earth mining in China," Resources Policy, Elsevier, vol. 48(C), pages 112-116.
    13. Hayes-Labruto, Leslie & Schillebeeckx, Simon J.D. & Workman, Mark & Shah, Nilay, 2013. "Contrasting perspectives on China's rare earths policies: Reframing the debate through a stakeholder lens," Energy Policy, Elsevier, vol. 63(C), pages 55-68.
    14. Jason C. K. Lee & Zongguo Wen, 2018. "Pathways for greening the supply of rare earth elements in China," Nature Sustainability, Nature, vol. 1(10), pages 598-605, October.
    15. Hatayama, Hiroki & Tahara, Kiyotaka, 2015. "Evaluating the sufficiency of Japan׳s mineral resource entitlements for supply risk mitigation," Resources Policy, Elsevier, vol. 44(C), pages 72-80.
    16. Golev, Artem & Scott, Margaretha & Erskine, Peter D. & Ali, Saleem H. & Ballantyne, Grant R., 2014. "Rare earths supply chains: Current status, constraints and opportunities," Resources Policy, Elsevier, vol. 41(C), pages 52-59.
    17. Massari, Stefania & Ruberti, Marcello, 2013. "Rare earth elements as critical raw materials: Focus on international markets and future strategies," Resources Policy, Elsevier, vol. 38(1), pages 36-43.
    18. Dimitra Ioannidou & Niko Heeren & Guido Sonnemann & Guillaume Habert, 2019. "The future in and of criticality assessments," Journal of Industrial Ecology, Yale University, vol. 23(4), pages 751-766, August.
    19. Schlinkert, Dominik & van den Boogaart, Karl Gerald, 2015. "The development of the market for rare earth elements: Insights from economic theory," Resources Policy, Elsevier, vol. 46(P2), pages 272-280.
    20. Machacek, Erika & Kalvig, Per, 2016. "Assessing advanced rare earth element-bearing deposits for industrial demand in the EU," Resources Policy, Elsevier, vol. 49(C), pages 186-203.
    21. Pavel, Claudiu C. & Lacal-Arántegui, Roberto & Marmier, Alain & Schüler, Doris & Tzimas, Evangelos & Buchert, Matthias & Jenseit, Wolfgang & Blagoeva, Darina, 2017. "Substitution strategies for reducing the use of rare earths in wind turbines," Resources Policy, Elsevier, vol. 52(C), pages 349-357.
    22. Machacek, Erika & Fold, Niels, 2014. "Alternative value chains for rare earths: The Anglo-deposit developers," Resources Policy, Elsevier, vol. 42(C), pages 53-64.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Seiler, Volker, 2024. "The relationship between Chinese and FOB prices of rare earth elements – Evidence in the time and frequency domain," The Quarterly Review of Economics and Finance, Elsevier, vol. 95(C), pages 160-179.
    2. Lee, Yurim & Dacass, Tennecia, 2022. "Reducing the United States’ risks of dependency on China in the rare earth market," Resources Policy, Elsevier, vol. 77(C).
    3. Kamal, Elham & Bouri, Elie, 2023. "Dependence structure among rare earth and financial markets: A multiscale-vine copula approach," Resources Policy, Elsevier, vol. 83(C).
    4. Xiao, Shijiang & Geng, Yong & Rui, Xue & Su, Chang & Yao, Tianli, 2022. "Behind of the criticality for rare earth elements: Surplus of China’s yttrium," Resources Policy, Elsevier, vol. 76(C).
    5. Seiler, Volker, 2021. "China-to-FOB price transmission in the rare earth elements market and the end of Chinese export restrictions," Energy Economics, Elsevier, vol. 102(C).
    6. Yu, Shiwei & Duan, Haoran & Cheng, Jinhua, 2021. "An evaluation of the supply risk for China's strategic metallic mineral resources," Resources Policy, Elsevier, vol. 70(C).
    7. Schmid Marc, 2019. "Kritische Rohstoffe – Die Achillesverse der USA im Wettstreit mit China," Zeitschrift für Wirtschaftspolitik, De Gruyter, vol. 68(3), pages 309-330, December.
    8. Marc Schmid, 2021. "The Revised German Raw Materials Strategy in the Light of Global Political and Market Developments," Review of Policy Research, Policy Studies Organization, vol. 38(1), pages 49-75, January.
    9. Song, Ying & Bouri, Elie & Ghosh, Sajal & Kanjilal, Kakali, 2021. "Rare earth and financial markets: Dynamics of return and volatility connectedness around the COVID-19 outbreak," Resources Policy, Elsevier, vol. 74(C).
    10. Reboredo, Juan C. & Ugolini, Andrea, 2020. "Price spillovers between rare earth stocks and financial markets," Resources Policy, Elsevier, vol. 66(C).
    11. Xia, Qifan & Du, Debin & Cao, Wanpeng & Li, Xiya, 2023. "Who is the core? Reveal the heterogeneity of global rare earth trade structure from the perspective of industrial chain," Resources Policy, Elsevier, vol. 82(C).
    12. Hanif, Waqas & Mensi, Walid & Gubareva, Mariya & Teplova, Tamara, 2023. "Impacts of COVID-19 on dynamic return and volatility spillovers between rare earth metals and renewable energy stock markets," Resources Policy, Elsevier, vol. 80(C).
    13. Salim, Hengky & Sahin, Oz & Elsawah, Sondoss & Turan, Hasan & Stewart, Rodney A., 2022. "A critical review on tackling complex rare earth supply security problem," Resources Policy, Elsevier, vol. 77(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yufeng Chen & Biao Zheng, 2019. "What Happens after the Rare Earth Crisis: A Systematic Literature Review," Sustainability, MDPI, vol. 11(5), pages 1-26, March.
    2. Paulick, Holger & Machacek, Erika, 2017. "The global rare earth element exploration boom: An analysis of resources outside of China and discussion of development perspectives," Resources Policy, Elsevier, vol. 52(C), pages 134-153.
    3. Ge, Jianping & Lei, Yalin, 2018. "Resource tax on rare earths in China: Policy evolution and market responses," Resources Policy, Elsevier, vol. 59(C), pages 291-297.
    4. Zhou, Mei-Jing & Huang, Jian-Bai & Chen, Jin-Yu, 2022. "Time and frequency spillovers between political risk and the stock returns of China's rare earths," Resources Policy, Elsevier, vol. 75(C).
    5. Klossek, Polina & Kullik, Jakob & van den Boogaart, Karl Gerald, 2016. "A systemic approach to the problems of the rare earth market," Resources Policy, Elsevier, vol. 50(C), pages 131-140.
    6. Zhang, Kuangyuan & Kleit, Andrew N. & Nieto, Antonio, 2017. "An economics strategy for criticality – Application to rare earth element Yttrium in new lighting technology and its sustainable availability," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 899-915.
    7. Yi, Jiahui & Dai, Sheng & Cheng, Jinhua & Wu, Qiaosheng & Liu, Kailei, 2021. "Production quota policy in China: Implications for sustainable supply capacity of critical minerals," Resources Policy, Elsevier, vol. 72(C).
    8. Fernandez, Viviana, 2017. "Rare-earth elements market: A historical and financial perspective," Resources Policy, Elsevier, vol. 53(C), pages 26-45.
    9. Shigetomi, Yosuke & Nansai, Keisuke & Kagawa, Shigemi & Kondo, Yasushi & Tohno, Susumu, 2017. "Economic and social determinants of global physical flows of critical metals," Resources Policy, Elsevier, vol. 52(C), pages 107-113.
    10. Zuo, Zhili & Cheng, Jinhua & Guo, Haixiang & McLellan, Benjamin Craig, 2021. "Catastrophe progression method - path (CPM-PATH) early warning analysis of Chinese rare earths industry security," Resources Policy, Elsevier, vol. 73(C).
    11. Xia, Qifan & Du, Debin & Cao, Wanpeng & Li, Xiya, 2023. "Who is the core? Reveal the heterogeneity of global rare earth trade structure from the perspective of industrial chain," Resources Policy, Elsevier, vol. 82(C).
    12. Salim, Hengky & Sahin, Oz & Elsawah, Sondoss & Turan, Hasan & Stewart, Rodney A., 2022. "A critical review on tackling complex rare earth supply security problem," Resources Policy, Elsevier, vol. 77(C).
    13. Marc Schmid, 2021. "The Revised German Raw Materials Strategy in the Light of Global Political and Market Developments," Review of Policy Research, Policy Studies Organization, vol. 38(1), pages 49-75, January.
    14. Lee, Yurim & Dacass, Tennecia, 2022. "Reducing the United States’ risks of dependency on China in the rare earth market," Resources Policy, Elsevier, vol. 77(C).
    15. Machacek, Erika & Kalvig, Per, 2016. "Assessing advanced rare earth element-bearing deposits for industrial demand in the EU," Resources Policy, Elsevier, vol. 49(C), pages 186-203.
    16. Zhü, kèyù & Zhao, Shuang-yao & Yang, Shanlin & Liang, Changyong & Gu, Dongxiao, 2016. "Where is the way for rare earth industry of China: An analysis via ANP-SWOT approach," Resources Policy, Elsevier, vol. 49(C), pages 349-357.
    17. Seiler, Volker, 2024. "The relationship between Chinese and FOB prices of rare earth elements – Evidence in the time and frequency domain," The Quarterly Review of Economics and Finance, Elsevier, vol. 95(C), pages 160-179.
    18. Hache, Emmanuel & Seck, Gondia Sokhna & Simoen, Marine & Bonnet, Clément & Carcanague, Samuel, 2019. "Critical raw materials and transportation sector electrification: A detailed bottom-up analysis in world transport," Applied Energy, Elsevier, vol. 240(C), pages 6-25.
    19. Shuai, Jing & Peng, Xinjie & Zhao, Yujia & Wang, Yilan & Xu, Wei & Cheng, Jinhua & Lu, Yang & Wang, Jingjin, 2022. "A dynamic evaluation on the international competitiveness of China's rare earth products: An industrial chain and tech-innovation perspective," Resources Policy, Elsevier, vol. 75(C).
    20. Riba, Jordi-Roger & López-Torres, Carlos & Romeral, Luís & Garcia, Antoni, 2016. "Rare-earth-free propulsion motors for electric vehicles: A technology review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 367-379.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jrpoli:v:63:y:2019:i:c:33. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.