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Daikin to build air conditioners free of rare earths

Japanese company avoids risk of being unable to source from China

The 2022 model of Daikin's flagship air conditioner. The company plans to launch products next fiscal year that are free of rare-earth elements. (Photo by Tatsuro Miyazumi)

OSAKA -- Daikin will almost completely phase out the use of rare-earth metals in its air conditioners by fiscal 2025 to avoid rising costs and potential procurement issues since China controls a large chunk of the world's supply of the materials.

Growing demand for rare earths used in electric vehicles and wind turbines has fueled concerns that prices will rise, in addition to the geopolitical risks over supplies.

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