Japan's Sojitz to expand Australian rare earth imports as partner broadens product lineup

By Yuka Obayashi

TOKYO, Feb 16 (Reuters) - Sojitz 2768.T will expand imports of Australian rare earth elements from Lynas Rare Earths LYC.AX, a spokesperson for the Japanese trading house said on Monday, as Tokyo seeks to reduce its dependence on China.

Sojitz has collaborated with Lynas since 2011 and began importing heavy rare earths - dysprosium and terbium, used in magnets - from the Australian miner last October.

The expansion of imports to include elements such as samarium, a raw material for permanent magnets, is expected to help Japan secure supplies of key materials used in high-tech and medical equipment from sources other than China, which currently dominates the market.

As Beijing tightens export controls on critical minerals, Japan, the United States, and their allies have been working to build supply chains outside China.

Earlier this month, U.S. Vice President JD Vance unveiled plans to marshal allies into a preferential trade bloc for critical minerals, proposing coordinated price floors.

LYNAS EXPANDS RARE EARTH OFFERING, MOVES UP SAMARIUM LAUNCH

Lynas began producing dysprosium and terbium - among the most valuable of the rare earths - last year and has brought forward the launch of samarium output to the first half of 2026, from 2027 initially, due to demand.

Sojitz will add samarium to its imports in April and aims to increase the total number of medium and heavy rare earths it sources from Lynas to as many as six by around mid-2027, the spokesperson said.

These include gadolinium, used in medical imaging diagnostics and reactor control rods, and yttrium, an ingredient in superconducting materials for medical equipment, the spokesperson added.

Sojitz declined to comment on import volumes.

The Nikkei business daily first reported Sojitz will broaden its imports of rare earth elements from Australia earlier on Monday.