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Japan and EU to Collaborate on Next-Generation Chips and Batteries, Nikkei Reports

 |  March 31, 2024

In a bid to reduce their dependence on China for crucial materials, Japan and the European Union are set to commence discussions on collaborating on advanced materials for next-generation chips and batteries. This move comes amidst growing concerns over supply chain vulnerabilities and the need for diversification in key industries.

According to a report by the Nikkei, Japan and the EU are gearing up to initiate talks aimed at fostering cooperation in developing advanced materials essential for the production of cutting-edge semiconductor chips and high-performance batteries. These materials, including rare metals, constitute vital components for various applications such as electric vehicles and renewable energy systems.

Iliana Ivanova, the EU commissioner for innovation and research, underscored the significance of establishing a dialogue framework in areas of mutual interest during a written interview with the Nikkei. Ivanova emphasized that such collaboration would be mutually beneficial for both parties, providing strategic advantages and contributing to reducing reliance on a single source for critical materials.

The proposed framework, slated to be launched as early as April, is envisioned as a proactive response to the EU’s strategic imperative to secure a stable and diversified supply chain. By forging closer ties with Japan in the realm of advanced materials, the EU aims to mitigate risks associated with overreliance on China, particularly in sectors crucial for technological advancement and sustainability initiatives.

The focus of the dialogue will be on addressing the challenges posed by China’s dominance in the production and supply of rare metals and other key materials. With the global demand for electric vehicles and renewable energy solutions on the rise, ensuring a resilient and sustainable supply chain for essential components has become a top priority for both Japan and the EU.

The collaborative efforts between Japan and the EU signal a strategic alignment in confronting shared challenges and leveraging collective strengths to foster innovation and resilience in critical industries. By pooling resources and expertise, the two economic powerhouses aim to bolster their technological capabilities and reduce vulnerabilities in the supply chain, ultimately enhancing their competitiveness in the global market.

Source: Reuters