Japan warns rare earth shortages are spreading across the economy

Filings to the Tokyo Stock Exchange have more than doubled since May, and more than two-thirds of nearly 200 notices in May and June blamed China’s export controls for current or potential business damage. Consumer and electronics companies are now joining the materials and industrial names in flagging the risk.

The pressure is landing on sectors that depend on imported rare earths for electric vehicles, advanced manufacturing, weapons and other strategic products. Regular filings over the past decade typically mentioned rare earths fewer than 40 times a month. A 2025 Ministry of Finance publication found Chinese rare-earth restrictions disrupted auto-parts procurement and temporarily forced production stoppages at Japanese carmakers.

The Ministry of Economy, Trade and Industry has a standing framework for securing stable supplies of critical minerals, and its policy page was updated on March 30, 2026 to reflect ongoing supply-security measures. In Tokyo on June 10 and 11, METI, Japan Oil, Gas and Metals National Corporation and the New Energy and Industrial Technology Development Organization hosted the Conference on Critical Materials and Minerals with officials, experts and companies from eight countries and one region. The conference has been held since 2011, after the sharp rise in critical-material prices, especially rare earth elements, in 2010.

Japan and the United States signed a framework on October 27, 2025 to secure supplies of critical minerals and rare earths through mining and processing, and a U.S.-Japan Critical Minerals Investment Ministerial was held in Tokyo on March 14, 2026. The two countries intend to support supplies of raw and processed critical minerals through coordinated investment. Rare-earth supply chains remain among the most geographically concentrated across the value chain.

Takeshi Higashifukasawa of Mizuho Research Institute said the 2010 experience showed Japan can absorb a hit from restrictions, but the effect could be larger this time because rare earths now run through far more supply chains. Sanae Takaichi has also highlighted critical-mineral security as a strategic issue.