According to Japan’s Sankei Shimbun on January 17, the reporter learned that Japan, the United States, Australia and India have begun to strengthen cooperation in the field of rare earths and rare metals in order to obtain stable supplies. Intergovernmental consultations will be held at the end of 2020, confirming the cooperation between the four countries.
Japan, the United States, Australia and India have been promoting cooperation in areas such as defense and now intends to expand the scope of cooperation to the field of resource security.
As reported, the four countries of Japan, the United States, Australia and India held a video-based consultation at the director level on December 18, 2020, and discussed the supply chain of rare metals. The four countries will consider cooperating to establish a supply chain that is less dependent on China.
The report pointed out that China occupies a high share of global rare earth production. Rare earths are used to make high-performance motors for pure electric vehicles and wind power equipment. In addition to rare earths, in the field of rare metals, China also accounts for more than 60% of the global share of cobalt smelting. Cobalt is used to produce batteries for pure electric vehicles.
The trend of greenhouse gas emission reduction is accelerating worldwide and it is estimated that the demand for rare metals that are indispensable in battery production will increase. U.S. President-elect Biden stated that he would return to the “Paris Agreement” aimed at coping with global warming. Japanese Prime Minister Yoshihide Suga also proposed the goal of achieving net zero greenhouse gas emissions by 2050. Rare metals are essential for Japan and the US to achieve these goals.
The report believed that if the demand for rare metals surges, China, which controls the production of rare metals, is likely to expand its influence. This is why Japan, the United States, Australia and India set out to strengthen cooperation.
