Japan moves to cut dependence on China's rare earths

Japanese trading houses Sumitomo (8053.TYO), Mitsubishi (8058.TYO) and Sojitz (2768.TYO) have struck deals with mines in the US, Australia and Vietnam for rare earth metals that could halve the country’s dependence on Chinese rare earth exports in a year, The Australian reported. Rare earth minerals are essential for hundreds of technologies from guided missiles to batteries to wind turbines. Sumitomo and Mitsubishi will import 4,000 tons of cerium, lanthanum, neodymium and other elements from the Mountain Pass mine in California owned by Molycorp (MCP.NYSE). The Japanese have committed to buy a year’s worth of stock from Molycorp’s inventory. Sojitz will import 15,000 tons from mines in Australia and Vietnam. Japanese senior government officials have said that Japan’s aim is to have "no more than a fifth" of its rare earth supply coming from China by 2015.