Japan to import rare earth from India

Tags: News
Japan and India will next week agree to jointly produce mixed rare earth, with Japan set to start importing from India in 2015 as it tries to wean itself of its reliance on China, the Nikkei business daily said on Thursday.

Japanese Prime Minister Shinzo Abe and Indian counterpart Narendra Modi will agree on the joint production at their summit meeting in Tokyo on Monday, the report said, without citing sources.

Indian Rare Earths, a wholly-owned subsidiary of the Department of Atomic Energy, and Japanese trading house Toyota Tsusho will sign a contract on joint production as early as September, it added.

The Indian company will make mixed rare earth materials from uranium and thorium ores, which Toyota Tsusho will use to produce neodymium for electric and hybrid cars, as well as lanthanum, cerium and praseodymium, the report said.

Annual production will be about 2,000 tonne to 2,300 tonne, equal to around 15% of Japan's demand, and roughly 2,000 tonne a year could be exported to Japan starting as early as February, it added.

A Toyota Tsusho spokesman said the firm was checking the report.

China produces more than 90% of the world's rare earth metals. Despite Japan's attempts to diversify supplies after China's cuts in export quotas several years ago, Japan still relies on China for the majority of rare earths for making electronics, magnets and clean technology.

China this month lost an appeal at the World Trade Organization in a case brought by the United States, the European Union and Japan to challenge China's restrictions on exports of rare earths, and is obliged to cancel its strict export quotas to abide by the ruling.

India is hoping to win Japanese backing for a nuclear energy pact during a visit by Prime Minister Narendra Modi, and lure investment into its $85 billion market while addressing Japan's concern about doing business with a nuclear-armed country.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • For those who are left to survive a war-torn world, let there be peace

    The hunger games have begun, and they have started reaping our children. There is no way around it.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Urs Schöttli

Shifting sands in the Far East

As was to be expected, Japanese prime minister Shinzo Abe ...

Zehra Naqvi

When humanity died, bestiality prevailed

The terrorist attack that killed 132 children in Peshawar has ...

Bubbles Sabharwal

Why self-esteem must be your best friend forever

Two negatives do make a positive! Imagine no doubts, no ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture