Sojitz (TYO:2768) is assessing rare earths investment opportunities across Southeast Asia and India as Japan seeks to reduce dependence on China for critical minerals used in high-tech manufacturing, Bloomberg reported Wednesday.

Chief Financial Officer Makoto Shibuya said the company is studying regions linked to southern China, including Laos, Cambodia and Vietnam, as possible supply sources. India and other markets could also be considered if viable projects emerge, according to the report.

Rare earths are used in products ranging from electric vehicle magnets and smartphones to defense systems. China controls much of the global supply chain, prompting Japan and other countries to diversify sourcing, the report said.

Sojitz and Japan-backed energy agency Japan Organization for Metals and Energy Security have partnered with Lynas Rare Earths (ASX:LYC) for more than a decade through a joint venture focused on rare earths development in Australia. The companies agreed in March to begin discussions on mineral exploration projects and potential mine development both within and outside Australia, according to the report.

Sojitz has also ruled out participation in the proposed Alaska LNG project, with Shibuya saying the US-backed venture remains too expensive. The company has gradually reduced its exposure to energy investments over the past decade, while keeping liquefied natural gas as one of its remaining focus areas, the report said.

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