As French President Emmanuel Macron visited Japan, the two nations agreed to grow cooperation on rare earth mineral supply chains, according to a deal they secured on April 1.
The agreement was signed between Japanese minister of industryAkazawa Ryosei and French Finance Minister Roland Lescure to source critical minerals and secure raw materials for Caremag, a rare-earth factory in southern France, as reported by Japanese public broadcaster NHK,.
“We cannot rely solely on specific countries, especially China,” Lescure told NHK, according to Reuters.
While China is the largest exporter of rare earths in the world, Japan is the largest importer. Caremag is important for both Japan and France because its investors include the French government and the state-owned Japan Organization for Metals and Energy Security and gas firm Iwatani. The project whose production of rare earths is based on treating and recycling magnets from end-of-life equipment is scheduled to start operating in late 2026.
Group IPS that’s providing basic engineering services to Caremag on the project said on its website that the project will be the first in Europe to execute a “long-loop recycling process, i.e. producing separated and pure rare earth oxides.”
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Group IPS defined three aims of the project which’ll be able to process on an average, 2,000 tons/year of a mix.
“Secure access to rare earths outside of China and increase the independence of France and Europe; Reduce risks associated with the volatility of rare earth prices; Support the ecological transition without consuming natural resources, but by valorizing the ‘urban mine,’” it said.
Rupal Kalebere, an analyst focusing on Japan’s strategic ties with its Indo-Pacific allies , told Vision Times that the agreement between Paris and Tokyo is important because rare earths are no longer an economic issue but an issue of strategic security as well.
“Japan has spent years trying to reduce its dependence on highly concentrated supply chains, especially in materials like dysprosium and terbium, which are essential for advanced manufacturing,” she said, adding that the bilateral agreement will create a more resilient rare earth ecosystem for Japan where its interests will be safe from Beijing’s geopolitical maneuvering.
China’s weaponization of rare earths dominance
The Japan–France partnership reflects a broader effort to reduce dependence on Chinese rare earth supplies, which Beijing has increasingly leveraged as a geopolitical tool. China’s restrictions on exports have significantly disrupted industrial sectors in both countries, straining supply chains, driving up costs, and creating production risks.
Although framed as a move to secure supply chains and support the Caremag recycling plant, which extracts rare earths from end-of-life equipment, the April 1 agreement is widely seen as a geopolitical response to China’s tightening export controls.
Tensions escalated in January when China imposed additional restrictions on dual-use items targeting 20 Japanese entities it alleged were linked to Japan’s military. According to Chinese state media outlet Xinhua, affected companies included major firms such as Mitsubishi Heavy Industries Shipbuilding Co. and SUBARU Corporation. A spokesperson for China’s Ministry of Commerce claimed the measures were intended to prevent Japan’s remilitarization and any renewed pursuit of nuclear capabilities.
This fresh wave of Chinese restrictions on Japanese entities in January happened exactly two months after Japanese Prime Minister Sanae Takaichi said that a mainland Chinese attack on Taiwan would imply an “existential threat” for Japan and as such warrant a military response by Tokyo. The Center for Strategic and International Studies (CSIS) hosted a conversation titled “China’s Rare Earth Campaign against Japan,” between its analysts, Gracelin Baskaran and Meredith Schwartz, who said that Beijing’s move against Japan is “widely seen” as a response to Takaichi’s comments.
“While previous Chinese export controls have largely been in response to trade disputes, this latest iteration ties export restrictions to the Taiwan issue, underlining that Beijing’s critical minerals strategy is closely intertwined with its broader military objectives,” CSIS said in its intro to the talk.
Like Japan, France too was greatly impacted by the Chinese restrictions on its exports of rare earths because of its heavily import-reliant high-tech, defense, and EV production sectors.
France hosts one of Europe’s few rare earth processing facilities, run by Solvay in La Rochelle. According to the BBC, the plant is critical for Europe’s attempts to reduce its dependence on China and to diversify its rare earth supply chains.
Solvay had already secured 100 percent ownership of rare earths joint ventures in Japan in 2022 after its announcement to invest in La Rochelle, according to an old release by the company. It’s the only plant outside of China that can process all the 17 rare earth elements, per the BBC.
Kalebere said the deepening cooperation between Japan and France is significant in this context, as it strengthens supply chain resilience amid rising geopolitical tensions involving China.
“The France partnership is significant because it gives Japan access to a more reliable and trusted supply route through Europe, especially in processing and refining, which is where the real vulnerability lies,” she said.
She added that while the agreement is framed in economic terms, its underlying importance is strategic, particularly in safeguarding Japan’s defense-industrial base from disruption.