KUALA LUMPUR (Nov 2): Japanese trading house Sojitz will start buying yttrium from Malaysia as early as 2027 in a bid to diversify its procurement away from China, Nikkei Asia reported.

The aim is also to acquire other medium and heavy rare earths from Malaysia, the Japanese financial newspaper reported citing Sojitz president Kosuke Uemura. "It won't be immediate, but we're on track for supplies to start next year or later," he was quoted as saying.

A processing plant expansion project in Malaysia led by Australian partner Lynas Rare Earths is making progress, he said.

Yttrium underpins LED displays and is blended into high-performance glass for camera lenses, while its radioactive isotope yttrium-90 is used to treat liver cancer. In defence, yttrium-based lasers are used for rangefinding and target designation on armoured vehicles and aircraft.

Other medium-to-heavy rare earths produced by Lynas include samarium — used in high-performance permanent magnets for defence applications — and terbium to make some electronic components and naval sonar systems.

Rare earths have taken centre stage in trade tensions after China, which has long dominated the supply of the critical materials, tightened export controls and their processing technology. China exported no gallium, dysprosium, terbium or yttrium to Japan in June.

Lynas’ site in Malaysia is now the only non-Chinese commercial producer of the materials crucial for modern technology. Malaysia, meanwhile, bans exports of raw rare earth and only allows value-added processed products to be shipped out.