Japan to subsidize half of costs for lithium and key mineral projects

Push to reduce reliance on China for crucial materials in EV batteries and motors

20230422N Lithium Chile

A lithium extraction site in Chile. Global demand for lithium-ion batteries for EVs and plug-in hybrid vehicles is projected to increase sevenfold by 2030. (Photo by Nozomu Ogawa)

KO FUJIOKA, Nikkei staff writer

TOKYO -- The Ministry of Economy, Trade and Industry will subsidize up to half the cost of mine development and smelting projects of important minerals by Japanese companies, Nikkei has learned.

The initiative seeks to secure raw materials such as lithium and rare-earth metals essential to electric vehicle batteries and motors. Currently dependent on countries such as China for many important minerals, Japan aims to diversify its supply network.

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