This article explains the motives behind the Japanese going around looking for more rare earth and securing their supply to wean themselves from reliance on Chinese supply.
http://www.cnbc.com/id/101973608
Japan is pushing to secure at least 60 percent of its rare earth needs from outside China within four years, as it bolsters efforts to curb its dependence on the world's biggest producer of elements crucial in smart phones, computers and cars.
Japan aims to sign a deal as early as this month that would give it four types of light rare earths from India, and has helped fund an Australian rare earths mine and Malaysian processing plant built by Australia's
Lynas.
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"It is critically important for Japan to secure sources of rare earths outside of China," said Akira Terakawa, deputy director at mineral and natural resources division of Ministry of Economy, Trade and Industry.
The Indian deal would provide 15 percent of Japan's needs. If Lynas is able to ramp up production as agreed, Japan could be sourcing more than 60 percent of its expected rare earths demand from outside China by 2018, based on
Reuters calculations from Japanese demand data and growth figures provided by a trading house which deals with rare earths.
Japanese demand is expected to be about 18,000 tons a year in 2018, with Lynas supplying 8,500 tonnes a year to
Sojitz and India providing 2,500 tons.
Toyota, the world's best-selling car maker, has been trying to cut its use of rare earths metals and at the same time has been working to recycle the metals from nickel-metal hydride hybrid batteries to use in new batteries.
However recycling - dubbed urban mining - is seen only as a long-term solution, as there won't be enough used hybrid vehicles to tap for material until after 2025, according to Japan's government-backed research body New Energy and Industrial Technology Development Organization (NEDO).
This article is another reason to believe that a successful Lynas is in the best interest of the Japanese.
It is why , IMO, we will hear soon about a successful refinance deal.
My opinions and thoughts, not an investment advice.
DYOR
(20min delay)