Shulou(Shulou.com)11/24 Report--

CTOnews.com, April 23 (Xinhua) according to Nikkei Asia, Japan's Ministry of economy, Trade and Industry will subsidize half the cost of Japanese companies' smelting and mine development projects in important minerals such as lithium, which aims to ensure raw materials such as lithium and rare earth metals, which are critical to electric car batteries and engines. At present, Japan is mostly dependent on countries such as China for these important minerals, and Japan hopes to reduce risk through a diversified supply network.

It is reported that the Japan Metal and Energy Security Organization will set up a fund to allocate 105.8 billion yen (CTOnews.com Note: currently about 5.438 billion yuan) from the related expenditure budget to provide support, with lithium, manganese, nickel, cobalt, graphite and rare earths as the main targets of support.

Lithium is one of the key raw materials for the manufacture of lithium-ion batteries for electric vehicles, and rare earths are indispensable elements in electric vehicle motors. As global demand for electric vehicles and plug-in hybrid vehicles grows, global demand for lithium-ion batteries is expected to increase sevenfold by 2030.

To capture this market, countries such as China have invested heavily in the mining and processing of important minerals such as lithium and rare earths. According to statistics, in 2019, China accounted for 60% of global lithium production and 63% of rare earth production. Japan, on the other hand, has few mineral resources of its own and can only be imported from abroad.

In order to change this situation, the Ministry of economy, Trade and Industry of Japan will implement a new subsidy policy from 2023 to provide up to 50% financial support for important mineral projects in which Japanese companies participate. These projects include overseas development and smelting of lithium, rare earth and other minerals, as well as the establishment of domestic facilities such as recycling of waste batteries.

Japan's Ministry of economy, Trade and Industry said that this policy aims to promote Japanese enterprises to establish a stable and reliable supply chain of important minerals around the world, and to provide a solid foundation for the development of Japan's electric vehicle industry.

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