“Given Canada’s emerging capacity to meet Japanese demand and opportunities for further investment, Ottawa-Tokyo partnerships are likely to extend beyond resource extraction to establish non-Chinese processing capacity capable of delivering materials that meet manufacturers’ specifications, while addressing the financial, regulatory, environmental, and community-related barriers facing Canadian projects…”
“Japan has spent a decade building REE supply chains outside China, expanding JOGMEC’s mandate to fund refining projects and designating critical minerals under its 2022 Economic Security Promotion Act. China’s 2026 restrictions on REE exposed the limitations of that effort. Formally aimed at military end-users, Beijing nonetheless halted the shipment of dysprosium, terbium, and yttrium from December 2025. Tokyo protested the restrictions, drew down its domestic stockpiles, and accelerated efforts to secure alternative supplies. These included a revised agreement reserving 75 per cent of Australia-based Lynas’ heavy rare earth output for Japanese industry, a ¥17.5 billion (C$ 155 million) subsidy for Shin-Etsu Chemical’s first domestic refinery since 2008, and a stake in France’s Caremag refinery securing half its planned output for Japan.”
“For Canada, the opportunity extends beyond supplying mineral deposits to Japan. Tokyo has strengthened its National Stockpiling System by introducing mineral-specific targets, extending the stockpiling horizon by as much as 180 days for high-risk critical minerals. To support overseas resource deployment, JOGMEC maintains offices in 15 countries with more than 30 projects…”
https://www.asiapacific.ca/publication/building-resilience-canada-japan-rare-earths-supply-chain