Japan aims to cut rare earth use by 10,000 tonnes

TOKYO Feb 25 (Reuters) - The Japanese government aims to cut rare earth usage by 10,000 tonnes per year within a few years, a trade ministry official said on Friday, as Tokyo seeks to reduce reliance on procurement of the rare metals from China.

The official told reporters the government will spend 33.1 billion yen ($404.2 million) in subsidies to projects to reduce consumption of rare earths, for which Japan relies heavily on imports from China.

Japan's rare earth imports from China in 2010 stood at 23,310 tonnes, accounting for some 82 percent of its total imports of the strategic metals, used in high-tech electronics, magnets and batteries. [ID:nTOE6BQ02V]

China, which produces 97 percent of the world's rare earths, slashed its export quota by 40 percent in 2010 from 2009 levels to about 30,000 tonnes and plans to trim it further this year. ($1=81.89 Yen) (Reporting by Risa Maeda; Editing by Edmund Klamann)