Japan, EU to explore joint rare earths procurement, Nikkei reports

(Reuters) -Japan and the European Union will consider joint public-private partnerships as they look to reduce their reliance on China in areas such as the procurement of rare earths, the Nikkei newspaper reported on Thursday.

As China, the dominant supplier of rare earths, tightens export controls, global manufacturers are concerned that Beijing's decision to curb exports of rare-earth alloys, mixtures and magnets could slow production and disrupt supply chains.

Japan and the EU will launch a new "economic two-plus-two" dialogue to bring together their foreign and economy ministers, expected to be announced at the Japan-EU leaders' summit scheduled for July 23, according to the report.

The framework will seek to further deepen Japan-EU relations, it said, adding that the parties agreed to the new dialogue at the working level and will use the initiative to jointly develop supply chains for critical minerals such as rare earths.

(Reporting by John Biju in Bengaluru; Editing by Pooja Desai)