Japan's Rare Earth Crisis

Japan’s Rare Earth Crisis occurred in 2010 when China, the world’s leading producer of rare earth metals critical for electronics, renewables, and defense, restricted exports to Japan amidst a diplomatic dispute. This sudden cutoff caused global supply shortages and exposed Japan’s heavy dependence on China for these essential materials. The crisis highlighted vulnerabilities in supply chains for technologies vital to modern industries and accelerated efforts worldwide to diversify sources and develop alternative reserves, aiming for greater access and resilience in the supply of rare earth elements critical for future innovation.