Feb. 24, 2023
Rare Earth Related Businesses For Carbon Neutralization
Since Sumitomo Corporation pioneered importing rare earths to Japan in the 1980s, to help establish a stable global supply chain for rare earths, the company has been engaged in rare earth exploration, development, production, and trading activities globally. Also, Sumitomo Corporation has established cooperative relationships with Chinese companies that possess advanced refining technologies and have worked to procure rare earths mined in Kazakhstan and Vietnam. In addition to these efforts, to further expand our global rare earth related businesses, as announced in "MP Materials and Sumitomo Corporation Strengthen Rare Earth Supply in Japan" dated February 22, 2023, we will also take on sales of U.S. rare earths to Japan. Through these efforts, we will contribute to the diversification and stabilization of procurement required by companies in related countries.
Rare earths are key inputs for motor magnets used in electric vehicles and wind turbines, whose demand is expected to grow to reduce CO2 emissions. Sumitomo Corporation Group is making multifaceted efforts to reduce CO2 emissions and increase renewable energy supply through various businesses, including electric vehicles related businesses and wind power generation businesses, with the aim of becoming carbon neutral in its business by 2050. As one of the essential basic raw materials, rare earths play a very important role in achieving carbon neutrality. We will continue to contribute to climate change mitigation by making society carbon neutral throughout our supply chain.