Sojitz, Lynas to expand product range of supply to Japan

Japan’s Sojitz Corp. (2768.T) and Australia’s Lynas Rare Earths (LYC.AX) are expanding their collaboration to diversify Japan’s rare earth supply chain, reducing reliance on China, which dominates global production of these critical materials. Sojitz will begin importing samarium from Lynas in April 2026, a key component for permanent magnets used in high-tech and medical equipment. The Japanese trading house aims to source up to six medium and heavy rare earth elements from Lynas by mid-2027, including dysprosium, terbium, gadolinium, and yttrium.

A separate agreement, announced March 10, 2026, solidifies a long-term supply arrangement between Lynas and Japan Australia Rare Earths (JARE), a joint venture co-owned by Sojitz and the Japan Organization for Metals and Energy Security. JARE has committed to purchasing 5,000 tonnes annually of neodymium-praseodymium, a vital magnet material, with Lynas reserving 75% of its heavy rare earth oxide output for Japanese buyers. The deal includes a $110 per kilogram price floor for the 5,000-tonne commitment, with JARE entitled to 30% of gains if prices exceed $150/kg, capped at $10 million annually.

These moves align with broader efforts by Japan, the U.S., and allies to secure alternative rare earth supply chains amid Beijing’s tightening export controls. Lynas, the largest rare earth producer outside China, has accelerated samarium production to meet rising demand, underscoring the strategic importance of diversifying sources for materials critical to technology, defense, and medical sectors.