The Japanese government is launching a support program to promote rare earth recycling.
According to the Nihon Keizai Shimbun (Nikkei) on the 24th, the Ministry of the Environment plans to begin a demonstration project this summer to extract and reuse rare earths from discarded motors. The project budget of 60 billion yen (approximately 56 billion won) has been included in the government budget proposal for fiscal year 2026 (April 2026 to March 2027).
The Ministry of the Environment plans to provide subsidies for the transportation and storage of discarded motors and electronic circuit boards to promote rare earth recycling, and will also support equipment installation. Currently, rare earths such as neodymium contained in discarded motors are rarely recycled. The push to promote rare earth recycling is intended to reduce Japan's heavy dependence on Chinese sources for most of its demand.
The Nihon Keizai Shimbun reported that "Prime Minister Sanae Takaichi mentioned 'rebuilding supply chains that do not depend on specific countries' with China in mind during her policy speech on the 20th," adding that "Japan currently depends on China for most of its rare earths."
In Japan, concerns over rare earth supply disruptions have grown since China imposed export controls on dual-use materials (materials that can be used for both military and civilian purposes) last month, citing Prime Minister Takaichi's remarks suggesting intervention in the event of a Taiwan contingency.