Part 5/20:

Japan offers a compelling case study in navigating the rare earth dilemma. In 2010, a territorial dispute between Japan and China led to a dramatic political event: China stopped exporting rare earths to Japan following a naval incident involving a Chinese fishing boat. The immediate aftermath was a severe panic, especially in the automotive sector, where hybrid vehicles faced production halts. Prices of rare earths surged tenfold, highlighting how fragile dependence on Chinese supplies had become.