Asia-Pacific Security — 2026-04-01

Japan and France Sign Rare Earths Deal to Reduce China Dependence

PM Takaichi and President Macron agreed on a roadmap to diversify critical mineral supplies away from China. A public-private refining project in southwestern France will process heavy rare earths including dysprosium and terbium used in EV motors and wind turbines, with Japan targeting 20% of future demand from the facility. The deal includes 12 joint projects in space technology. The agreement parallels broader Japan-France-Canada efforts to build non-Chinese supply chains for critical minerals.

Analysis
The Japan-France rare earths agreement is part of a broader trilateral effort with Canada to build non-Chinese supply chains. With China controlling 60%+ of rare earth processing, the planned French refining facility for dysprosium and terbium addresses a strategic vulnerability for EV, defense, and renewable energy manufacturing.

2 sources

Japan, France Agree Rare Earths Deal to Cut China Reliance - Asharq Al-Awsat
Japan's Takaichi, France's Macron to strike rare-earths deal - Nikkei Asia