A survey of 400 Japanese manufacturers found that rare earth procurement costs rose an average of 22% over the past year, largely due to China's tighter export controls, Nikkei reported Friday.
Nearly one-third of respondents said costs increased by 20% to 29%, while about one-fifth reported increases of 10% to 19%, the publication said, citing a survey conducted by Tokyo-based supply chain risk management firm Resilire.
Only a small share of companies said they were able to pass on most of the higher costs to customers. More than 40% absorbed over half of the increase themselves, while more than one in 10 were unable to pass on any of the additional costs, highlighting pressure on profit margins, the report said.
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