Press Conference by Minister Akazawa (Excerpt)

*Note: This is a provisional translation for reference purposes only.

8:31-8:45 a.m.
Tuesday, April 17, 2026
In front of the elevator hall, 2nd floor, Annex to the House of Representatives

Opening Remarks

Approval of an ensuring supply plan based on the Act on the Promotion of Ensuring National Security through Integrated Implementation of Economic Measures

Today, based on the Act on the Promotion of Ensuring National Security through Integrated Implementation of Economic Measures, we approved the ensuring supply plan for image sensors by Sony Semiconductor Manufacturing Corporation. According to the plan, the company will mass-manufacture leading-edge image sensors for use in smartphone cameras and in vehicles in its new factory under construction in Koshi City, Kumamoto Prefecture. The Ministry of Economy, Trade and Industry (METI) will provide the company with subsidies of up to 60 billion yen for the approved plan. Image sensors are semiconductor devices that function as electronic eyes by converting visual information into digital information and will become indispensable for autonomous driving and physical AI. We expect that the plant will contribute to the stable supply of image sensors, which are key devices in the age of AI.

Measures against imbalances in the supply of lubricating oil

Concerns have been raised about the difficulty of procuring lubricating oil. In response, let me speak about the actual situation concerning this oil and measures taken for it. Lubricating oil is made by using base oil, which is one of the byproducts of the oil refining process. By procuring crude oil through alternative routes and releasing oil reserves, we have secured a supply of lubricating oil in an amount sufficient to meet overall domestic demand. However, we acknowledge that there have been some imbalances in supply. Specifically, since the latter half of this March, orders for lubricating oil have been placed in amounts far above those recorded during the same month of last year. According to oil wholesalers who are lubricating oil manufacturers, their total shipment of lubricating oil in March showed a 30% increase year on year, causing a substantial decrease in the inventory amount. As a result, although we have secured a supply of lubricating oil in an amount necessary to meet overall domestic demand, some distributors and users have been unable to procure it in a timely manner. We acknowledge that there have been such imbalances in the supply chain. On the other hand, the import of materials for highly functional products, such as special base oil made in the Middle East, has been suspended, and related companies are making inventory adjustments to deal with the issue, while hastily working to procure alternatives. Today, in order to eliminate imbalances in the supply of lubricating oil to ensure stable supply, the Agency for Natural Resources and Energy will make the following three requests to relevant oil wholesalers and associations of lubricating oil companies. First, the Agency will request them to ensure that their respective supply volumes will be on par with those for the same month of last year and also to reduce the supply volumes in and after April for distributors and users who purchased more in March year on year, to offset the increase. Second, the Agency will request the wholesalers and industry associations to ask their business partners to implement measures for balanced supply. Third, the Agency will request them to consult with METI, specifically, the Agency, if any problems occur concerning the procurement of the material for lubricating oil after adjustments have been made among related companies. Through these measures, we will steadily eliminate imbalances in the supply chain of lubricating oil and do everything we can do to ensure a stable supply. The administrative staff will provide further details later.

Question-and-Answer Session

Fourth Ministerial Meeting on the Situation in the Middle East

Q: In relation to lubricating oil, which you mentioned earlier, I believe there was a Ministerial Meeting on the Situation in the Middle East yesterday. Based on the results of the discussion held at the meeting, could you explain how METI will implement measures in response to the situation?

A: At the ministerial meeting held yesterday, we checked the level of progress made on measures to ensure the stable supply of critical materials. Specifically, we confirmed the following three points at the meeting. First, for fuel oil and oil-based products, we have secured them in an amount necessary to meet overall domestic demand. At the meeting, however, we also affirmed once again the need to eliminate imbalances in supply and bottlenecks in distribution one by one. Second, by adopting a scheme for wholesalers to sell directly to business facilities, we have already resolved issues concerning the supply of Heavy Oil A, which is used at sewage treatment facilities and tea manufacturing sites. Third, concerning paint thinner products, housing equipment manufacturers, and TOTO, we have specified bottlenecks in the supply chains to ensure stable supplies. Moreover, at the meeting, we reaffirmed our commitment to building resilient energy and critical minerals supply chains in Asia to ensure stable supplies in Japan. We will work on this in cooperation with other Asian countries through the Partnership on Wide Energy and Resources Resilience, or POWERR Asia, which Prime Minister Takaichi has newly proposed. We will continue to implement all necessary measures to prevent the situation in the Middle East from seriously affecting people’s lives, livelihoods and economic activities.

Second meeting of the Defense Industry Working Group

Q: I believe there was a meeting of the Defense Industry Working Group yesterday. Please share with us the results of the meeting and the future outlook for the industry.

A: At the second meeting of the Defense Industry Working Group held on Thursday, April 16, participants expressed their opinions about policies to enhance the defense industry. Specifically, members of the working group pointed out several needs. First, it is necessary to examine measures to enhance the manufacturing infrastructure for dual-use products and to use them for national defense in case of an emergency. Second, it is important to show the outlook for sustained demand to encourage startups to participate in the industry and generate innovations. Third, it is necessary to strengthen the system to implement the transfer of defense equipment for further cooperation with allied nations and like-minded countries. Fourth, in order to strengthen relevant infrastructures in the upstream and midstream sections of the supply chain, it is important for prime defense contractors to give support to SMEs. METI, in light of these opinions, will promote investment to solidify the industrial infrastructure for dual-use products in cooperation with the Ministry of Defense, aiming for the dramatic enhancement of the country’s war sustainability, thereby achieving a virtuous cycle between defense and economy.

Partnership on Wide Energy and Resources Resilience in Asia

Q: The day before yesterday, an Asia Zero Emission Community Plus (AZEC+) meeting was held at the initiative of Japan. With regard to POWERR Asia proposed by Prime Minister Takaichi, structural measures to enhance Asia’s energy resilience, such as building a Japan-Asia collaborative reserve system, were put forward. METI is in charge of energy policies. Concerning POWERR Asia, how will METI plan and implement specific measures on a medium- to long-term basis? Please share with us your views on the partnership and the schedule for it.

A: Prime Minister Takaichi newly proposed the Partnership on Wide Energy and Resources Resilience in Asia, or POWERR Asia, at the AZEC+ online summit, and participating leaders of Asian countries greatly welcomed the proposal. She basically focused on energy policies in the proposal, but the target of this partnership is not limited to energy policies. For example, crude oil is used as a material for oil-based products in addition to being used as fuel oil for energy. In fact, for oil-based products, bottlenecks in distribution and imbalances in supply have happened due to the situation in the Middle East, just as you have been working hard to report. It is therefore quite meaningful for Japan to help other Asian countries build their respective reserve systems as part of Japan’s own energy policies and the international cooperation effort. It will benefit Japan if Asia as a whole has a more resilient energy supply chain, as procurement through alternative routes basically causes competition among Asian countries. Japan has strengths in terms of credit extension and financial power among Asian countries, and if each Asian country can procure energy sources more easily, it will also benefit Japan in many aspects. What is more important is the fact that oil-based products made by using imported crude oil in other Asian countries are exported to Japan, and Japan depends on these products. If the countries exporting oil-based products to Japan cannot procure crude oil, they will reduce the export volume. On social media, some are raising questions about POWERR Asia, such as whether Japan will share crude oil and oil-based products with other Asian countries while the country itself is facing a shortage of these products. But that is not what we aim to do; we are aiming to build a robust supply chain across Asia. Japan will support other Asian countries in procuring oil, but it does not mean that Japan will supply oil to them. We will assist them with crude oil procurement and also with the export of related products eventually for Japan to build a robust oil-based product procurement system with no imbalances in supply and no bottlenecks in distribution. With regard to POWERR Asia, the Asia Zero Emission Community (AZEC) has made great achievements. AZEC was launched by former Prime Minister Kishida, and he devoted himself to advancing it. I think that the idea of enhancing Asia’s supply chains in light of the situation in the Middle East has been remarkably incorporated into AZEC 1.0 to upgrade it to AZEC 2.0.