Japan Invests in French Rare Earths to Diversify Supply Chain

Iwatani

Jogmec and Iwatani to secure dysprosium and terbium from France by 2027

Japan is expanding its rare earth supply base through a strategic investment in France. On 17 March, Japan’s state-owned energy agency Jogmec and metals trading firm Iwatani announced a joint investment of up to €110 million ($120 million) in Lyon-based rare earths company Caremag.

Rare earth supply to start by 2027

Under the agreement, Iwatani will secure term contracts for around 250t/year of dysprosium and 45t/year of terbium. Jogmec said these quantities represent about 20% of Japan’s projected heavy rare earth (HRE) demand. Deliveries are expected to begin as early as 2027, assuming Caremag starts operations in late 2026.

Caremag plans to process both recycled magnets (2,000t/year) and raw ore (5,000t/year) at a new facility in the Lacq industrial zone in southwestern France, according to Japan’s Ministry of Economy, Trade and Industry (Meti).

Japan pursues supply diversification strategy

Tokyo continues efforts to reduce reliance on China, which dominates the global rare earths market. Jogmec emphasized the importance of diversifying rare earth sources for permanent magnets—classified as strategically critical since 2022.

In 2023, Jogmec and Sojitz also invested in Australia-based Lynas Rare Earths, securing 65% of its dysprosium and terbium output. The new partnership with France aligns with the broader bilateral "Japan-France Declaration on Cooperation in the Field of Critical Minerals," signed in May 2024.