In the wake of supply disruptions of certain metals caused by the covid-19 pandemic, Japan has decided to launch a series of measures to address potential supply risks from geopolitical instability or future pandemics.<\/p>\n
A report<\/a> by market consultancy firm Argos states that one of such measures implies ramping up government control over strategic reserves of 34 rare metals and increasing inventories of some strategically important metals such as cobalt.<\/p>\n According to Argos, the Ministry of Economy, Trade and Industry presented a proposal to the central government where it asks for the State to take full control of strategic rare metals reserves by setting target levels for stocks, as well as plans for procurement and the release of supplies from the reserve. <\/p>\n The Ministry of Economy urged more flexibility in determining inventory levels for each rare metal, after taking into account their strategic importance, geopolitical risks and domestic demand<\/p>\n<\/blockquote>\n<\/figure>\n The ministry also urged more flexibility in determining inventory levels for each rare metal, after taking into account their strategic importance, geopolitical risks and domestic demand. <\/p>\n For national security considerations, the department asked the Shinzo Abe cabinet to keep inventory targets and actual stockpile levels secret.<\/p>\n \u201cJapan has designated 34 \u2018rare metals\u2019 – including rare earths – as having the potential for stockpiling and currently holds reserves of seven \u2014 nickel, chrome, tungsten, cobalt, molybdenum, manganese and vanadium,\u201d Argus report states. \u201cThe stocks can cover 60 days of the country\u2019s consumption, after including non-obligatory privately-held stocks equivalent to 18 days of consumption. The strategic reserves are defined as being the property of state-owned agency Jogmec and are managed by the agency in its storage bases.\u201d<\/p>\n Besides managing its internal reserves, the Asian superpower has also been securing its external supply of rare earths. Back in June 2019, Japan Australia Rare Earths BV (JARE), a joint venture between state-owned Japan Oil, Gas and Metals National Corp (JOGMEC) and Sojitz Corp., approved a generous financing package<\/a> for Australia\u2019s Lynas Corp (ASX: LYC), expanding the country\u2019s control over the company\u2019s rare earths output.<\/p>\n\n