JAPAN: Country looks to budget 1.2 billion dollars for finding alternative sources and supplies of rare earth as China seeks to cut exports by up to 30 percent

Record ID: 463071

  • Title: JAPAN: Country looks to budget 1.2 billion dollars for finding alternative sources and supplies of rare earth as China seeks to cut exports by up to 30 percent
  • Date: 20th October 2010
  • Summary: BUILDING OF THE UNIVERSITY OF TOKYO AND SIGN THAT READS 'INSTITUTE OF INDUSTRIAL SCIENCE, THE UNIVERSITY OF TOKYO' PROFESSOR TORU OKABE (ON RIGHT), INSTITUTE OF INDUSTRIAL SCIENCE, THE UNIVERSITY OF TOKYO SPEAKING WITH HIS ASSISTANT IN HIS LABORATORY AT THE UNIVERSITY OF TOKYO OKABE HOLDING A GLASS BOTTLE THAT CONTAINS DYSPROSIUM (DY), A RARE METAL CLOSE UP OF GLASS BOTTLE CONTAINING DYSPROSIUM (SOUNDBITE) (Japanese) INSTITUTE OF INDUSTRIAL SCIENCE, THE UNIVERSITY OF TOKYO, PROFESSOR TORU OKABE, SAYING: "One doesn't need to use rare metal in order to make a high performance motor. However, in that case, the motor becomes very big in size. In order to manufacture a compact motor with strong power output, it is essential to use rare metal. We do have the technology to manufacture without using rare metals, but the reality is that, if we do use rare metals, we can make a much better motor." MAGNET OF A HYBRID CAR ENGINE, FORTIFIED WITH RARE METAL CALLED NEODYMIUM WITH HAMMER STICKING TO IT HAND TRYING TO TEAR HAMMER AWAY FROM THE MAGNET (SOUNDBITE) (Japanese) INSTITUTE OF INDUSTRIAL SCIENCE, THE UNIVERSITY OF TOKYO, PROFESSOR TORU OKABE, SAYING: "The Japanese invented the rare metal magnet, but I think it is important to invent a new magnet that will replace the rare metal magnet." TOKYO, JAPAN (RECENT - OCTOBER 2010) (REUTERS) INSIDE HYBRID CAR HYBRID CAR LI-ION BATTERY TOKYO, JAPAN (OCTOBER 18, 2010) (REUTERS) MINISTRY OF ECONOMY, TRADE AND INDUSTRY EXTERIOR AND SIGN. (SOUNDBITE) (Japanese) DIRECTOR, NONFERROUS METALS DIVISION, MINISTRY OF ECONOMY, TRADE AND INDUSTRY, TSUTOMU MURASAKI, SAYING: "In two years, mines around the world will definitely be in operation, and if we have two years, we will be able to develop substitute materials and recycling technology. So I think we can establish a steady supply structure by then." TOKYO, JAPAN (RECENT - OCTOBER 15, 2010) (REUTERS) CLOSE UP OF RARE METAL DYSPROSIUM ASSORTMENT OF RARE METALS
  • Embargoed: 4th November 2010 12:00
  • Keywords:
  • Location: Japan
  • Country: Japan
  • Topics: Industry,Science / Technology
  • Reuters ID: LVA2AEIJ910ZF5O1MER3NJIBQEO
  • Story Text: For the workers at Re-Tem (pronounced ree-tem) Corporation in Tokyo, one person's trash is certainly another's treasure.
    They are one of many Japanese firms involved in what is called urban mining - or the recycling of electrical equipment for precious and rare metals and minerals especially as China, the source of much of the world's rare earths, announces cuts to exports.
    Beijing on Tuesday (October 19) announced a 30 percent cut of rare earth export quotas in 2011. This follows a brief de facto ban of rare earth metal export bans to Japan during a diplomatic row. While China insists that the cuts have been to protect its environment from the devastating effects of mining these metals, these incidents have been a wake up call, especially to Japan, to look for alternatives.
    So while Japan is often considered resource poor with few natural mines and ores, it has turned its attention to the wealth of national urban scrap heap which has the potential of tapping one of the world's wealthiest sources of metals, precious or otherwise.
    One research centre, The National Institute of Material Sciences, estimate Japan's scrap heaps contain at least 10 percent of the world's metal and mineral reserves and could have the potential to have similar amounts in rare earths.
    "A typical urban mine consists of small home appliances. There are a lot of rare earth and rare metals included in these small home appliances. We are in a process of researching how to efficiently extract and recycle rare earth, rare metals, including precious metals and other metals that are inside these home appliances," Yoshiko Yamamoto, researcher at Re-Tem Corporation told Reuters.
    However recycling metals from scraps is still not a cheap option, with much of the operation still heavily labour intensive and hand-worked.
    In addition, it is very difficult to extract rare metal once it is molded together with other products. Each manufacturer has its own ingredient when it comes to creating the metal, and that makes it harder for recycling companies to decipher what is actually in the metal.
    But the Japanese government is hoping to change that by investing heavily in research for recycling.
    "Recycling technology, including the intermediary process, is still under developed and not yet well established as an industry. I think the number of researchers will start to increase from now on and when that happens, we will see an advancement in technology, and that in return will jump start the recycling industry. I think this industry is a growing field," Yamamoto added.
    The Japanese government has promised to budget an extra 1.2 billion U.S. dollars in research, new supply routes and stockpiling of rare earths, hoping never to be caught as unprepared as they were when China decided to clamp down.
    Rare earth elements have a variety of technological and industrial applications, and are included in batteries, computers and weapon systems, and over 97 percent of the world's supply comes from China. Half of China's rare earth exports go to Japan, without which Japan would struggle to create many of the high-tech products it is famed for.
    One typical rare earth very much used in Japan is dysprosium, to create strong magnetics to power much of Japan's electric car batteries.
    Professor Toru Okabe of Tokyo University studies rare earth metals, such as dysprosium which help create strong magnets to power hybrid and electric cars, and hopes to find ways to create alternative sources that produce the same results without having to rely on these essential metals.
    "One doesn't need to use rare metal in order to make a high performance motor. However, in that case, the motor becomes very big in size. In order to manufacture a compact motor with strong power output, it is essential to use rare metal. We do have the technology to manufacture without using rare metals, but the reality is that, if we do use rare metals, we can make a much better motor," Okabe told Reuters.
    "The Japanese invented the rare metal magnet, but I think it is important to invent a new magnet that will replace the rare metal magnet," he added.
    While supplies and the manufacturer's stocks, at least in dysprosium, are unlikely to dry up right away, the nation faces a steady problem ahead as China looks to consume more and more of their own metals for their growing high-tech industries rather than exporting them to rival Japan.
    Japan is now looking to remedy that by earmarking 1.2 billion U.S. dollars out of the 61.3 billion U.S. dollar extra budget it agreed to compile earlier this month.
    Japanese trade officials say much of the efforts will be helping to develop rare earth mines outside China, and stockpile supplies it still has in order to ensure that they will have weaned itself from dependency on China in two years.
    "In two years, mines around the world will definitely be in operation, and if we have two years, we will be able to develop substitute materials and recycling technology. So I think we can establish a steady supply structure by then," Tsutomu Murasaki, Director of non-ferrous metals division at the Ministry of Economy, Trade and Industry told Reuters on Monday (October 18).
    This little-known class of 17 related elements is also used for a vast array of electronic devices ranging from Apple's iPhone to flat screen TVs, all of which are competing for the 120,000 tons of annual global supply.
    Worldwide demand for rare earth is expected to exceed supply by some 30,000 to 50,000 tons by 2012 unless major new production sources are developed, mining experts say.
    There are currently many new mine projects outside of China in the pipeline but few will be able to compete with it on price unless governments offer production subsidies. Low prices for rare earth metals from China have undermined production and led to closure of several mines overseas.
    Lax environmental rules and cheap labour also allow China to sell rare earth metals at low prices.
    Thus some experts warn that despite Japan's two year assurances, it may take as many as 10 years to develop new rare earth mines, if not alternative technologies.
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