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

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  • 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.

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  • 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
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    Cited by:

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    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. 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).
    4. 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).
    5. 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.
    6. 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).
    7. 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).
    8. Kamal, Elham & Bouri, Elie, 2023. "Dependence structure among rare earth and financial markets: A multiscale-vine copula approach," Resources Policy, Elsevier, vol. 83(C).
    9. 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).
    10. 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.
    11. 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).
    12. Reboredo, Juan C. & Ugolini, Andrea, 2020. "Price spillovers between rare earth stocks and financial markets," Resources Policy, Elsevier, vol. 66(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).

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