What is Shin-Etsu Chemical's new facility intended to achieve, and why is it being built now?

Shin-Etsu Chemical plans to build a new rare earth refining facility in Fukui prefecture to strengthen its supply chain and secure raw materials for its rare earth magnet business. The move is a direct response to China's ongoing export controls — which have restricted exports of several heavy rare earths and other materials to Japan for at least four months — amid diplomatic tensions over Taiwan, indicating Beijing’s use of critical mineral controls as leverage.

How much financial support is the Japanese government providing for Shin-Etsu's new facility, and what is known about the total investment?

The Japanese government will provide a subsidy of 17.5 billion yen for the project. While the Nikkei business daily reported the total investment is expected to be at least 35 billion yen ($218 million), Shin-Etsu’s spokesperson confirmed the final amount has not yet been finalized.

Shin-Etsu to Build New Rare Earth Refining Facility Amid China's Export Control

Jun 11, 2026

Shin-Etsu Chemical plans a $218 million rare earth refining facility in Fukui to secure supply chains amidst China's export restrictions on critical minerals. The project aims to diversify sources away from China following recent geopolitical disputes.

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Shin-Etsu to Build New Rare Earth Refining Facility Amid China's Export Control

Shin-Etsu to Build New Rare Earth Refining Facility Amid China's Export Control

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