AIST Approach to rare earths issues Tetsuichi Takagi

AIST Approach to rare earths issues Tetsuichi Takagi Leader, Mineral Resources Research Group, Institute for Geo-Resources and Environment National Institute of Advanced Industrial Science and Technology

AIST What is “Rare Earths” ? Rare Metals Rare Earths 1

Examples of Global Supply Chain (1) AIST ØThe supply chain is integrated on a global scale. Personal Computer Abrasives Japan U. S. Hard disk platters Hard disk drives China Personal Computers Rare earth - Cerium oxide Exhaust Gas Catalyst material Worldwide Japan & EU 3 -way catalysts Catalytic converters Automobiles Rare earth - Cerium carbonate Optical Glass material Japan Optical glass Digital Cameras Rare earths - Lanthanum oxide 2

Examples of Global Supply Chain (2) AIST Permanent Magnets Magnet material Rare earths Automobiles Hard disk drives Japan Magnet alloy Permanent magnets Motors -Dysprosium metal - Neodymium metal - Samarium metal Wind-power generation Phosphor material Rare earths Yttrium oxide Europium oxide Terbium oxide Phosphor CCFL (Cold-cathode fluorescent lamps) Flat Panel Displays Fluorescent lights Fluid Catalytic Cracking (FCC) Catalyst material Rare earths - Lanthanum oxide - Cerium chloride FCC catalyst Oil refineries 3

Current Situation on Rare Earths AIST Global Deposits Others 36% Australia 1% U. S. 12% Global Production India Others Australia 3% 1% 4% U. S. 6% China 48% China 86% India 3% Mineral Commodity Summaries 2013 4

Rare Earths Demand Trends in the World AIST ØThe demand for rare earths is expected to increase due to the popularization of hybrid vehicles, electric vehicles and wind-power generation. Supply （million） New cars’ Sales Trend in the world Next-generation Vehicles （without HEV） HEV Conventional vehicles （year） （IEA Energy Technology Perspectives 2010 ） (Industrial Minerals Company of Australia) 5

The prices of Rare Earths (Asian Metal) 6

AIST Measures for Consuming Countries Ø Rare earths consuming countries need to take the following measures, “ABCD+R”. Alternatives : use substitute materials Broader international cooperation Conservation : Reducing resource use Diversifying supply sources Recycling 7

AIST FY 2010 Policy Packages to Secure Rare Earths *1 USD = 100 JPY 1. Development of substitute materials and technologies to reduce resource use US$120 million A C 2. Promotion of introducing manufacturing facilities to reduce resource use and use of substitute materials US$420 million A C 3. Diversifying supply sources of rare earths and other scarce resources US$460 million R D FY 2011 1. Development of substitute materials and technologies to reduce resource use US$85 million A C FY 2012 1. Development of substitute materials and technologies to reduce resource use US$3 million A C 8

Global Rare Earths Projects AIST Diversifying supply sources Dong Pao (Vietnam) -Toyota Tsusho Corporation - Sojitz Corporation Mountain Pass(U. S. ) Molycorp Corporation. Orissa (India) -Toyota Tsusho Corporation - Indian Rare Earths Mt. Weld (Australia) Lynas Corporation Ltd. 9

平成２４・２５年度通常予算を活用したレアアース・レアメタル Policy Packages to Secure Rare Earths and Other Scarce Resources 2013 対策 FY 2013 Development Rare Earth Free Motors US$30 million A C As the first project of “the future development research system※”, they develop the Rare Earth Free Magnets through the industry-university-public cooperation. As for the motors, they design and product trial manufactures to develop the motors which can reduce a energy -loss by 25%. ※ the future development research system；Japan promotes the project which need more than 10 years to turn to practical use. Development of substitute materials and technologies to reduce resource use US$8. 2 million A R Establishment of the sustainable recycle route and technology of dismantling. Recycle the motors for air-conditioners and vehicles. 10

AIST Conclusions Ø It is expected that demand for rare earths will increase with the popularization of hybrid electric vehicles, wind power generators, etc. Ø It is important to share the correct understanding of the effects of rare earths issues on global industries throughout the supply chain. Ø We need to achieve the sustainable Rare Earths industrial world for not only consuming countries but also resource countries through bilateral cooperation. Whole world should be blessed with Rare Earths. 11