The dispute over the Diaoyu Islands, Japanese LED manufacturers are affected
If China plays the rare earth sanctions card, Japanese LED manufacturers will be affected
China's rare earth reserves account for about 23% of the world's total reserves, and it bears more than 90% of the world's market supply. Among them, most of the rare metals in Japan's high-end manufacturing industry are imported from China, which is China's most stable and largest rare earth export market. In order to get rid of the heavy dependence on China for rare earth imports, Japan announced on October 1, 2010 that it would implement the plan to develop alternative rare earth materials in advance and plan to develop rare earths in more countries in order to achieve multi-channel supply of rare earths.
Rare earth metals are transition elements of group IIIB on the chemical periodic table, including scandium (Sc), yttrium (Y) and 15 kinds of lanthanide elements, a total of 17 kinds, which are distributed in surface minerals in the form of compounds or ions. They are used to make LEDs, Indispensable raw materials for high-tech products such as LCD panels, touch panels, hybrid electric vehicle motors, and DVDs. Rare earths are widely used in various electronic components. For example, Eu used as a phosphor in LEDs and laser light sources, and La used as a hydrogen storage alloy in nickel-hydrogen rechargeable batteries.
In addition, La will be added to improve capacitor characteristics, and Y will be used in superconducting materials.
However, the total amount of rare earth metals imported by Japan from China in the first half of this year was 3,007 tons, accounting for 49.3%, which fell below 50% for the first time since 2000. In 2011, Japan’s imports of rare earths from China decreased by 34% from the previous year to 15,400 tons.
In the context of increasingly tense Sino-Japanese relations, if China invokes the WTO's national security exception principle, establishes a strategic resource export control system, and prohibits the export of military or strategic resources that may be used for military use to Japan. Rare earth sanctions are expected to be the most effective economic card at present. Once the rare earth sanctions are implemented, since rare earths are important raw materials for phosphors, and phosphors are used in LED device packaging, the chain reaction brought about by them will inevitably have a greater impact on Japanese LED-related industries.
