0. Approach to rare earths issues
Thank you for the introduction. My name Masakuni INOUE, Director, Critical Material Industry Office,
Manufacturing Industries Bureau of METI.
I am very pleased to be here with you today.
I’m here today to talk about “Approach to rare earths　issues”.
Tetsuichi Takagi
Leader, Mineral Resources Research Group,
Institute for Geo-Resources and Environment
National Institute of Advanced Industrial Science and Technology

1. What is “Rare Earths” ? Rare Metals Rare Earths
Rare earths are a set of seventeen chemical elements in the periodic table, specifically the fifteen lanthanides plus scandium and yttrium.
Despite their name, rare earth elements are relatively plentiful in the Earth‘s crust. However, because of their geochemical properties, rare earth elements are typically dispersed and not often found concentrated as rare earth minerals in economically exploitable ore deposits. It was the very scarcity of these minerals that led to the term “rare earth”.
レアアースは地殻に富む元素であり、その平均濃度は貴金属類などより遙かに高い。しかし、広く分散しているため、濃集して産することはまれである。そのため、レアアースと呼ばれている。

2. Examples of Global Supply Chain (1)
The supply chain is integrated on a global scale.
Personal Computer
Japan
U.S.
China
Abrasives
Hard disk platters
Hard disk drives
Personal Computers
Rare earth
- Cerium oxide
Exhaust Gas Catalysts
Japan & EU
Worldwide
Catalyst material
3-way catalysts
Catalytic converters
Automobiles
Rare earth
- Cerium carbonate
Due to its variety of use, supply chains of rare earths to final products have the following characteristics:レアアースのサプライチェーンには次のような特徴がある。
(a) Usually a long chain;　通常は長いチェーンである。
(b) Composed of many manufacturers such as material suppliers, parts suppliers and makers of final products;　多くの生産者、たとえば最終製品の材料供給・製造、部品供給・製造など多岐にわたっている。
(C)It is integrated on a global scale.　それらが世界規模でインテグレートしている。
Rare earths are the key materials to their final products , final product manufactures have realized that they are also rare earths users and noticed the importance of managing the use of rare earth.
I’ve shown the outline of current situation on rare earths.　レアアースはこれら最終製品のキーとなる材料であり、最終製品の製造業者も、自分たちがレアアースの使用者であり、レアアースの適切な使用が重要であることを認識している。
Optical Glass
Japan
Glass material
Optical glass
Digital Cameras
Rare earths
- Lanthanum oxide

3. Examples of Global Supply Chain (2)
Permanent Magnets
Automobiles
Hard disk drives
Japan
Magnet
alloy
Permanent
magnets
Magnet material
Motors
Rare earths
-Dysprosium metal
- Neodymium metal
- Samarium metal
Wind-power generation
Phosphor
CCFL (Cold-cathode fluorescent lamps)
Flat Panel Displays
Phosphor material
Phosphor
Rare earths
Yttrium　 oxide
Europium oxide
Terbium oxide
Fluorescent lights
These are the examples of global supply chain, too. 世界的サプライチェーンの例をさらに紹介します。CCFL 冷陰極蛍光ランプ　FCC catalyst 流動接触分解用の触媒（重油からガソリンを作る工程）
Next, I will show the outline of current situation on rare earths. レアアースの現状を次に紹介します。
Fluid Catalytic Cracking (FCC) Catalyst
FCC catalyst
Oil refineries
Catalyst material
Rare earths
- Lanthanum oxide
- Cerium chloride

4. Current Situation on Rare Earths
Global Deposits
Global Production
Mineral Commodity Summaries2013
Mineral Commodity Summaries2013
As you can see in the left chart, rare earths was deposited in China about 48%.
Actually, as I mentioned before, rare earths elements are relatively plentiful in others, but most of rare earths were produced by China, about 86%, because of economic efficiency.
The lower chart says, most of rare earths were supplied from China instead of U.S. and others.

5. Rare Earths Demand Trends in the World
The demand for rare earths is expected to increase due to the popularization of hybrid vehicles, electric vehicles and wind-power generation.
Supply
（million）
New cars’ Sales Trend in the world
Next-generation
Vehicles
（without HEV）
Next, let me talk about the global demand of rare earths. As you can see from this slide, the demand for rare earths had increased up to Due to the global depression, demand decreased by two-thirds in However, in 2010 demand recovered to the level of In the future, it is expected to increase due to the popularization of hybrid vehicles, electric vehicles and wind-power generation.
レアアースの需要が2008年まで上昇したが、リーマンショックにて2009年に落ち込む。しかし、2010年には2008年レベルを回復した。これから、ハイブリッド車・電気自動車の流行や風力発電の普及により、需要は増加する。
HEV
Conventional vehicles
（year）
（IEA　Energy Technology Perspectives 2010）
(Industrial Minerals Company of Australia)

6. The prices of Rare Earths
(Asian Metal)
Next is the prices of the rare earths. As you can see, the prices jumped up 2010, but after that it fall. But rare earths are critical materials of hybrid vehicles, electric vehicles, and wind-power generation, so we need to continue to monitor the prices closely.

7. Measures for Consuming Countries
Rare earths consuming countries need to take the following measures, “ABCD+R”.　
Alternatives : use substitute materials
Broader international cooperation
Conservation : Reducing resource use
Japan has mentioned these measures, "ABCD+R" in the first workshop in DC.
Rare earths consuming countries need to take the following five measures. The first is “A, alternatives” means using substitute mateials. The second is “B, broader international cooperation” , such as the this workshop. The third is “C, conservation”, means reducing resource use. The fourth is “D, diversifying supply sources”. The final is “R, recycling”. These are namely “ABCD+R”. Japan has promoted these measures since Let me introduce briefly next slide.
Diversifying supply sources
Recycling

8. Policy Packages to Secure Rare Earths
FY 2010
*1USD = 100JPY
1. Development of substitute materials and technologies to reduce resource use
A　C
US$120 million
2. Promotion of introducing manufacturing facilities to reduce resource use and use of substitute materials
A　C R
US$420 million
3. Diversifying supply sources of rare earths and other scarce resources
　　　 D
US$460million
FY 2011
1. Development of substitute materials and technologies to reduce resource use
A　C
I’d like to talk about policy packages to secure rare earths and other scare resources in the last few years. In reaction to stagnation of rare earths trade from China in fiscal year 2010, the Government of Japan carried out “the Rare Earths Policy Package”.
I’d like to briefly introduce the results obtained by the policy package in fiscal year 2010.
Cerium oxide is used as a raw material for abrasives. In Japan, domestic demand for cerium oxide is expected to decrease from 10,000 tons to 5,000 tons per year by substituting cerium abrasives with zirconium or silica and through recycling used abrasives.
Lanthanum oxide is used as a raw material for FCC (fluid catalytic cracking) catalysts which are used for petroleum refining catalysts. A Japanese company has developed rare earths free FCC catalysts.
Cerium carbonate is used as a raw material for exhaust gas catalysts. A Japanese company has diversified a supply source outside China. The company has installed a new facility to use rare earths from a new supply source through the support of the policy package.
Next, the results obtained by the policy package in fiscal year 2011.
In fiscal year 2010, the Government of Japan mainly supported rare earth primary users’ efforts to reduce rare earths use.
But, in the case of a permanent magnet, to reduce rare earth (Nd Dy) use, motor makers also have to effort to install rare earths free or less magnets in their products, and final products makers also have to effort to install rare earth free or less motors in their products.
So, in fiscal year 2011, the Government of Japan supported such efforts of motor makers and final products makers .
Actually, all accessory motor producers for automobile (not only Hybrid Vehicles and Electric Vehicles but also gasoline vehicles) understood our policy and have received official supports. As a result of these efforts, it will be expected to reduce the amount of rare earths usage for permanent magnets.
US$85million
FY 2012
1. Development of substitute materials and technologies to reduce resource use
A　C
US$3million

9. Global Rare Earths Projects
Diversifying supply sources
Dong Pao (Vietnam)
-Toyota Tsusho Corporation
- Sojitz Corporation
Mountain Pass(U.S.)
Molycorp Corporation.
Orissa (India)
-Toyota Tsusho Corporation
- Indian Rare Earths
Next, let me talk about rare earths projects in the world.
In U.S, Molycorp Corporation has been processing stockpiled concentrate since 2009 and has embarked on mining of fresh ore and expansion of its facilities at Mountain Pass
In Australia, Lynas Corporation has completed construction of the Mount Weld Concentration Plant and is currently constructing an advanced materials plant in Malaysia.
In India, Toyota Tsusho Corporation and the company’s local subsidiary in India is promoting a plan to construct a manufacturing plant for processing rare earth oxides with the cooperation of Indian Rare Earths Limited.
In order to diversify supply sources of rare earths, we hope that these projects develop promptly and provide their products to rare earths users.
Mt. Weld (Australia)
Lynas Corporation Ltd.

10. Policy Packages to Secure Rare Earths and Other Scarce Resources 2013
平成２４・２５年度通常予算を活用したレアアース・レアメタル対策
FY 2013
A　C
Development Rare Earth Free Motors
US$30million
As the first project of “the future development research system※”, they develop the Rare Earth Free Magnets through the industry-university-public cooperation. As for the motors, they design and product trial manufactures to develop the motors which can reduce a energy-loss by 25%.
※ the future development research system；Japan promotes the project which need more than 10 years to turn to practical use.
Development of substitute materials and technologies to reduce resource use
A　 R
US$8.2million
It is very difficult to realize rare earth free permanent magnet motors ahile maintaining performance .
However, in the future, the demands for permanent magnet motors are expected to increase due to the popularization of hybrid vehicles, and so on.
So, we started to promote the development of rare earths free motors.
It is important to develop them taking a long time, steadily.
As for recycling, it take a long time to establish the recycling systems.
The motors included rare earths have not yet discarded a lot, but they will increase with in about 10years.
In the current situation, it is difficult for public sector to develop the recycling systems by themselves because of a small amount of discarded motors included rare earths.
So we started the support to development of the sustainable Recycle routes, in preparation for the increase in the future. エネルギー損失25％のモーターを目指す。
Establishment of the sustainable recycle route and technology of dismantling.
Recycle the motors for air-conditioners and vehicles.

11. Conclusions
It is expected that demand for rare earths will increase with the popularization of hybrid electric vehicles, electric vehicles, wind power generators, etc.
It is important to share the correct understanding of the effects of rare earths issues on global industries throughout the supply chain.
We need to achieve the sustainable Rare Earths industrial world for not only consuming countries but also resource countries through bilateral cooperation. Whole world should be blessed with Rare Earths.
I’d like to emphasize 3 points as conclusions.
First, It is expected that demand for rare earths will increase with the popularization of hybrid electric vehicles, electric vehicles, wind power generators, etc. レアアースの需要は今後益々増大する。
Second, It is important to share the correct understanding of the effects of rare earths issues on global industries throughout the supply chain.　サプライチェーンを通じて、世界の産業界にレアアース問題の影響の重大性を正しく理解させる必要。
Finally, We need to achieve the sustainable Rare Earths industrial world for not only consuming countries but also resource countries through bilateral cooperation. Whole world should be blessed with Rare Earths.
持続的なレアアース工業社会を、消費国のみならず資源国とも協力して、二国間協力を通じて、達成する必要。
Thank you for your attentions.