March 9 – The Ministry of Economy, Trade and Industry will begin seeking substitutes for rare metals used in digital home appliances and high-grade steel, initiating a search with the private sector as early as July in a bid to develop practical versions in five years, The Nikkei learned Thursday.

Japan relies on imports from such places as China and Russia for the majority of these rare metals. But with prices surging on increased global demand – up four- and five-fold since 2003 in some cases – the government sees the need to find substitute materials with similar functions.

Indium used in such products as LCD televisions, tungsten incorporated in hard tools, and dysprosium contained in personal computer hard-disk motors, are among the rare metals for which replacements will be sought. Japan is said to account for roughly 60 per cent of the world's demand for indium.

Analyzing the atomic alignment of the rare metals, METI and private-sector partners will search for replacements. Ceramic substitutes will also be considered.

The ministry has requested 5.5 billion yen (US$47 million) for the initiative through fiscal year 2011. The project will be opened to bidding, but nonferrous-metal firms, magnetic material manufacturers and universities are seen as the likely candidates. – Asia Pulse