Sojitz Targets Southeast Asia for New Rare Earth Supply Sources

Japanese trading house Sojitz is actively seeking new sources of rare earth elements in Southeast Asia and other regions to diversify its supply chain and reduce dependence on China. The company aims to boost output of these critical minerals, which are essential for high-tech manufacturing, including electric vehicles, mobile phones, and missile systems. Chief Financial Officer Makoto Shibuya identified Laos, Cambodia, and Vietnam as potential target areas due to their geographic proximity to southern China. Additionally, Sojitz remains open to investment opportunities in India and other countries if suitable projects arise. This strategic move aligns with Japan's broader national effort to mitigate reliance on China, which currently dominates the global rare earth supply chain and holds significant leverage in trade and diplomatic negotiations. By expanding its sourcing network, Sojitz aims to secure a more stable and resilient supply of these highly sought-after materials, ensuring continuity for industries dependent on them amidst growing geopolitical tensions and supply chain vulnerabilities.