The Ministry of Economy, Trade and Industry said Friday it will grant ¥33.1 billion in subsidies for 160 capital investment projects that would contribute to reducing the use of rare earths or diversifying suppliers of the minerals.
Japan is trying to reduce its heavy reliance on China for the resources vital for making high-tech goods, after China's rare earth exports temporarily stagnated last autumn amid the diplomatic spat over the Senkaku Islands.
The scale of the projects could total about ¥110 billion, including capital spending by the companies themselves, and METI expects Japan's annual use of rare earths to fall by about 10,000 tons, compared with the current 30,000 tons.