Editor’s Note
This article highlights Japan’s strategic push to reduce reliance on rare earth imports, driven by corporate innovation and government policy.

Furthermore, Toyota’s successful development of dysprosium-free magnets, which reduces dependence on China, along with other Japanese companies rapidly advancing the reduction of rare earth usage through their inherent technological development capabilities, has garnered worldwide attention.
In response, the Japanese government established a national rare earth stockpiling system, implementing strategic reserves through public-private partnerships to address the risks of future rare earth sanctions. It is also fair to say that the heightened awareness of how dangerous it is to rely on China for strategic materials has been significant.
Japan, the United States, and the EU jointly filed a complaint with the WTO (World Trade Organization) in 2014 against China’s rare earth export restrictions and won a ruling that China’s export limits were unjustified. This forced China to abolish its export quota system and export tariffs.
China had no choice but to accept the failure of its “rare earth diplomacy.” Japan’s series of responses at that time can be described as masterful. A major factor behind this was that Japan still retained rare earth refining technology.

While the term “rare earth magnets” is used above, it is important to return to basics and clarify the distinction between rare earths and rare earth magnets.
Rare earths refer to rare metallic elements such as neodymium and samarium. China is particularly known for strategically managing the following seven:
– Neodymium (Nd): Material for high-performance magnets.
– Praseodymium (Pr): Used in magnets and aerospace alloys, often used together with Nd.
– Dysprosium (Dy): Enhances the heat resistance of magnets.
– Terbium (Tb): Used for magnet reinforcement, phosphors, and displays.

– Samarium (Sm): Used in samarium-cobalt magnets with high-temperature resistance.
– Yttrium (Y): Material for lasers, superconductors, and phosphors.
– Gadolinium (Gd): Used in medical contrast agents and magnetic refrigerants.
Among these, the five elements—neodymium, praseodymium, dysprosium, terbium, and samarium—are particularly crucial as raw materials for high-performance permanent magnets.
In other words, “rare earth magnets” refers to permanent magnets made using these five elements, or sometimes the elements themselves.

China’s ban on rare earth exports has dealt a blow to the American side.