Japan and France have agreed to strengthen cooperation on rare earth supply chains, including securing materials for a new refining plant in France, as both countries seek to reduce reliance on China. The deal also includes joint initiatives in space technology.
Japan and France have agreed to boost cooperation on rare earth supply chains to reduce reliance on China. The announcement came during French President Emmanuel Macron’s visit to Japan for talks with Prime Minister Sanae Takaichi.
Under the agreement, both countries will secure raw material supplies for Caremag, a rare earths refining project in southern France, backed by the state-owned Japan Organization for Metals and Energy Security, gas firm Iwatani, and the French government. The plant, scheduled to begin operations in late 2026, will supply Japan with roughly 20% of its future demand for dysprosium and terbium, essential for magnets used in EV motors, offshore wind turbines, and electronics.
The move follows growing concerns over China’s control of rare earths exports. In February, Beijing restricted dual-use materials, including several rare earths, to 20 Japanese entities, citing national security. Japan has already cut its dependency on China from 90% to 60% since a 2010 supply restriction and is diversifying through overseas investments, recycling, and joint exploration projects with the US, India and Australia.
Beyond minerals, Japan and France plan to expand space cooperation, with companies from both countries expected to sign memorandums of understanding on 12 joint projects, covering rocket launches and space debris removal.
