Japanese firms are building Southeast Asian rare-earth supply chains to reduce China dependence, with Sumitomo Metal Mining (TYO:5713) using Philippine resources and Sojitz (TYO:2768) developing mines in Vietnam and Malaysia, Nikkei reported on Monday.
During fiscal 2026, Sumitomo Metal Mining plans to boost its output of scandium--a rare-earth metal essential for fuel cell technology--by 20%, the publication said.
The company will extract raw ore from a Philippine mine where it holds an interest, then process the material into finished products at its facility in Hyogo Prefecture, the news daily said.
Incorporating scandium into fuel cells improves their durability and allows them to function at lower temperatures, and with global demand for the metal doubling in 2025, fuel cells are increasingly viewed as a key energy source for rapidly expanding AI data centers, it added.
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