Japanese trading house Sojitz Corp is expanding its search for rare earth mineral sources to Southeast Asia and other regions beyond Australia to boost production and diversify its supply chain. The move aims to reduce dependence on Australia’s Mt Weld mining site and China’s dominant global rare earth supply chain, which is crucial for manufacturing electric vehicle magnets, mobile phones, and missile systems [1, 2].

Sojitz noted specifically Laos, Cambodia, and Vietnam—areas connected to southern China—as potential exploration targets. The company also said it may consider India and other countries if viable investment opportunities arise. Makoto Shibuya, Sojitz’s CFO, said, "Areas connected to southern China such as Laos, Cambodia and Vietnam will be potential regions that the company will look into. The company will also consider India and other countries if suitable rare earths investment opportunities exist there" [1].

For over a decade, Sojitz has partnered with the Tokyo-backed energy agency Jogmec and Australia-based Lynas Rare Earths Ltd in a joint venture focused on rare earth mining. In mid-March 2026, they agreed to initiate talks on mineral exploration that could lead to new mines both within Australia and abroad [1].

Sojitz’s primary goal is to find additional sources beyond Lynas’s Mt Weld operation in Western Australia, which currently dominates its supply chain. The company is part of a wider effort by Japan and other countries to reduce reliance on China, which holds significant leverage in trade and diplomatic relations through its control of rare earth minerals [1, 2].

Alongside rare earth minerals, Sojitz has focused selectively on energy projects, but it is not pursuing stakes or volume offtake agreements in the planned Alaska LNG project, citing cost concerns. Its energy investments make up about 10% of its total portfolio over the past decade [1].

Separately, Japan agreed with the United States in 2025 to invest US$550 billion in the US, including projects like Alaska LNG, in exchange for tariff reductions on Japanese exports [1].

Sojitz’s ongoing talks with Jogmec and Lynas on mineral exploration mark the next step in diversifying rare earth supply sources beyond Australia. The company aims to secure new mining projects that can supplement current output and strengthen supply chain resilience [1].