30.03.2012/XNUMX/XNUMX - Japan's consumption of rare earths is expected to decrease

Private sector is working on replacement technologies / More recycling planned / By Detlef Rehn
Tokyo (gtai) - Japan is heavily dependent on the PRC for rare earths and other metals. To change this, the economy is looking for ways to replace the metals with less critical materials. New high-performance magnets and motors for electric cars are important fields of activity. Japan also wants to recycle more metals. The private sector has launched various projects. The government is considering setting up a nationwide recycling system for small electrical and electronic equipment.

Although Japan has been under great pressure from European, US, South Korean and even Chinese competitors in a number of hi-tech fields for several years, the country is still dominant in many future-oriented products. This applies, for example, to hybrid and electric cars or high-performance batteries.
In order to remain internationally competitive in these areas, Japan is keen to ensure that rare earths and other “strategic” metals, which are required in the manufacture of many high-tech products, are also available in sufficient quantities in the future. So far, the PR China, as the world's most important producer of these materials, has been the most important source of supply, but Japan sees this dependency as dangerous and has taken steps to reduce it accordingly.

Japan is one of the major consumers of rare earths. The country imported 2010 according to the customs statistics just under 28.600 t. The Development Bank of Japan also reports domestic consumption based on figures from the Ministry of Economic Affairs (METI) with 31.000 t. World demand reached about 136.000 t.

In the year 2011 Japan imported only about 22.500 t. One of the main reasons for this was that the major users of rare earths, especially the automotive and electrical and electronics industries, intensified their efforts to use, replace or recycle less materials in the face of extreme increases in world prices. The triple disaster from the earthquake, tsunami and nuclear accident in Fukushima is likely to have reduced consumption.

1) actual results; 2) forecast

Source: Development Bank of Japan, December 2011

Japan is pursuing a multi-pronged approach in its strategy of reducing its large dependence on China. On the one hand, the state and private companies, and especially the large trading houses, are in the process of opening up new sources of supply as part of a very active resource diplomacy (see article "Japan wants to become more independent of China in strategic metals" from March 28.3.2012, XNUMX, http: // www. gtai.de).

A second measure is to create sufficiently large stocks to bridge delivery failures. It is currently mandatory to hold stocks for nine “strategic” metals: nickel, chromium, tungsten, cobalt, molybdenum, manganese, vanadium, indium and gallium. The Japan Oil, Gas and Metals National Corporation (JOGMEC), which reports to the METI, is responsible.

Thirdly, the private sector is looking for technical possibilities to replace the “strategic” metals with other materials and to reduce consumption. The companies often receive financial support from the state. On February 8.2.12th, 49, the METI published a list of 600 projects, through which, among other things, the domestic consumption of dysprosium, which tends to be scarce in the long term, is to be reduced from the current 400 t per year to 50 t within two years. The development of high-performance magnets that contain little or no dysprosium is, for example, the subject of a project at TDK. The METI is supporting the project with a total of 457 billion yen (1 million euros, 110 euro = around 2011 yen), which will be made available from the third supplementary budget for fiscal year 1.4 (April 31.3 to March XNUMX).

Motors for electric cars and industrial machines that do not use rare earths, among others, are another field that is receiving a lot of attention. At the latest Tokyo trade fair for electric and hybrid cars in mid-January 2012, for example, the Japanese company Nidec presented a new SR motor ("switched reluctance") that does not require permanent magnets and therefore works without materials such as neodymium and dysprosium. Nidec plans to start series production of SR motors around 2013. As the newspaper "Nikkan Kogyo Shinbun" reported at the end of February 2012, Nidec plans to invest between 2015 billion and 200 billion yen in the construction of the production facilities in Japan, China, Poland and Mexico by 300.

The goal of saving rare earths is also served by the joint venture Intermetallics Japan Corporation, which was founded at 7.12.11. Partners are the special steel company Daido Steel, the trading company Mitsubishi Corp. and the US company Molycorp., the largest producer of rare earths outside of China. Daido holds a share of 8,3% in the capital of 35,5 billion yen. Mitsubishi accounts for 34,5%, Molycorp. 30%.

The plan is to initially produce and market 2013 t of novel neodymium-iron-boron (NeFeB) permanent magnets, probably from January 500. For this purpose, a new plant is being built in Nakatsugawa (Gifu Prefecture). The capital investments amount to 10 billion yen according to a report by the business paper "Nikkei". The magnets are primarily intended for use in the automotive industry. According to the “Nikkei”, an unnamed large German car manufacturer has already decided to use the new permanent magnets.

A more comprehensive and efficient recycling of rare earths and other metals is the fourth focus of the Japanese strategy. For example, considerable amounts can be found in car catalytic converters and in small electrical and electronic equipment. Precise, reliable information on this is difficult to determine, but the newspaper "Nikkan Kogyo Shimbun" has calculated that PCs no longer used in Germany alone contained 14,9 t of tantalum and unused cell phones a further 3,2 t of this metal; this corresponds to 5% of the total domestic tantalum requirement.

The "treasures" hidden in the small electrical and electronic devices should be recovered better in the future than before. There is already a regulated take-back system for cell phones and computers, so the recycling rates are quite high: for cell phones, for example, it was 2010% in 37,8. But in the case of game consoles, digital and video cameras, DVD players and other devices, the situation is much less favorable.

In 2008/2009 the Ministry of the Environment carried out model tests for recycling small electrical appliances in a number of regions of the country and, on this basis, is discussing how a nationwide system can be set up and thus money for the import of “strategic” metals and other materials can be saved . A group of experts is proposing to set up such a system by 2014. However, there are still numerous open points, not least the question of how recycling can be financed.

There is still plenty of scope for recycling with other metals as well. The British chemical company Johnson Matthey writes in its report "Platinum 2011" that Japan covered only around 2010% of its total demand of 11 ounces in 545.000 through recycling in the case of platinum for automotive catalysts. The average price per ounce in 2010 was US $ 1.611.

Similar to the question of how the consumption of metals can be reduced, the private sector has also launched projects with regard to recycling. According to a report by the newspaper “Nikkei Business Daily” from mid-October 2011, Mitsubishi Materials will invest around 1 billion yen to increase the recycling capacity of large household electrical appliances, including air conditioners and refrigerators, by 30% annually at Cetec 520.000 units to increase. Cetec, based in Mie Prefecture, is a joint venture between Mitsubishi Materials and Panasonic. At the same time, the recycling of rare earth metals, including neodymium, is to begin. Hitachi has also developed a new technology to recycle rare earth magnets from hard disk drives and air conditioners. It should be fully operational from 2013.

The 13. Asia-Pacific Conference of German Business (APK) is funded by the 1. to 3. November 2012 will be held in Gurgaon, New Delhi. The APK, which has been held every two years in Asia since 1986, has now established itself as the premier network meeting in the region. More than 700 decision makers from companies, associations and federal ministries participated in the last APK in Singapore 2010.

The on-site organization is at the AHK India (Indo-German Chamber of Commerce, IGCC), from which further information can be obtained from: ppgad@pucrs.br or on the following homepage: http:// Indien.ahk.de/apk/.

The APK is organized by the Chambers of Commerce Abroad (AHKs) in the Asia-Pacific region, the Asia-Pacific Committee of German Business (APA) - with its supporting associations Federal Association of German Industry (BDI), German Chamber of Industry and Commerce eV (DIHK) , German Asia-Pacific Business Association (OAV), Federal Association of German Wholesale and Foreign Trade (BGA) and Bankers Association - and the Federal Ministry of Economics (BMWi).
(Germany Trade & Invest gtai)

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