Arya News - A national project beginning in fiscal 2027 will provide up to seven years of subsidies to universities and research institutes developing new technologies and strengthening research on critical resources.
TOKYO – The science ministry will launch a national project to develop alternative materials to resources such as rare earths and petroleum products including naphtha for which Japan relies heavily on imports from China and other nations, The Yomiuri Shimbun has learned.
The project, which will start in fiscal 2027, will provide subsidies to universities and research institutes engaged in developing new technologies, and strengthen the basic research capabilities needed for securing critical resources.
The Education, Culture, Sports, Science and Technology Ministry will book related expenses of ¥10.4 billion in its budget requests for next fiscal year’s budget, and hopes the project will help mitigate risks to the supply of resources essential for Japan’s industries.
The new project will run for a maximum of seven years until fiscal 2033 and tap into the “stronger and more prosperous Japan investment framework,” under which ceilings are not set on budget requests from government ministries and agencies.
The main recipients of this government assistance will be initiatives that develop technologies that substitute resources Japan relies heavily on other nations for – such as rare earths, copper and naphtha – with easily acquirable materials, and technologies that recycle these resources or reduce the amount used.
China dominates the global market for rare earths, accounting for about 70% of global output and about 90% of the refining market. In a bid to build up domestic industries capable of handling the smelting and refining processes of critical minerals such as rare earths, the ministry also will support the development of new methods that do not discharge toxic waste and therefore have less impact on the environment.
More specifically, about five hubs at which academic and industry researchers conduct research across multiple fields will be selected from universities, national research and development agencies and other entities. The government will provide these hubs with about ¥1 billion in support annually. In addition, about ¥200 million will be provided annually to research teams that develop key technologies designed to mitigate risks to resources, and about ¥20 million per year will be funneled to teams engaged in basic research preceding that stage.
Supplies of rare earths are constantly at the mercy of China’s export controls, and concerns about a naphtha shortage grew temporarily due to the situation in Iran.
Demand for common mineral resources such as copper, which is used in wiring, also has jumped due to the data centers being built to meet the surging demand for artificial intelligence. It is becoming evident that supplies of copper will not be able to keep up with this growing demand.
The science ministry will work closely with the Economy, Trade and Industry Ministry and the Environment Ministry to resolve this problem by gaining a clear picture of the industry’s needs and what technologies will be required, and then inviting applications for government support.