'The Takaichi Fallout': How will tighter rare earth supplies impact Japan's high-end manufacturing?

China's tightening rare earth export restrictions since January 2026 have cut supplies to Japan by 34-90% across critical elements, directly threatening Japanese automotive, semiconductor, and robotics manufacturers that depend on rare earths for high-performance magnets and precision equipment. Japan is responding with urgent diversification—securing alternative suppliers in Australia, Vietnam, and the Philippines; investing in domestic refining capacity; and planning recycling infrastructure—but solutions are years away from mass deployment.

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