Japan METI FY 2027 Budget Request Seeks JPY 7.79 Trillion

On August 31, Japan METI FY 2027 Budget Request was disclosed as part of the Ministry of Economy, Trade and Industry’s budgetary planning for the fiscal year beginning in April 2027. METI has requested a total of JPY 7.79 trillion, representing a 47% percent increase from the combined FY 2026 initial budget and FY 2025 supplementary budget. Under the Japanese government’s “Strong and Prosperous Japan” investment framework, the Japan government is seeking funding for risk management and growth investment priorities, including stable procurement of critical minerals and naphtha, along with physical artificial intelligence (AI) development and AI robot deployment.

The total funding requested under this framework is JPY 6.31 trillion, reflecting a broad focus on strengthening Japan’s economic resilience and investment capacity. Due to rising geopolitical risks, approximately JPY 680 billion has been allocated to securing critical minerals, including rare earths. The Ministry plans to accelerate upstream development by acquiring mining rights and investing in smelting operations. The objective is to secure resources sufficient to meet projected 2030 demand, including a total of 14,000 tons of rare earths. These measures are intended to reinforce resource security as geopolitical uncertainty increases.

Based on the situation in the Middle East, approximately JPY 220 billion was newly requested for the Ministry’s project to strengthen chemical product supply chains. The additional funding forms part of the broader effort to address supply risks and maintain stable access to strategically important materials. Alongside critical-mineral measures, the budgetary requests emphasize emerging technologies through physical AI development and the introduction of AI robots. Together, these initiatives indicate that Japan is combining resource security, supply-chain resilience, and advanced technology investment within its FY 2027 budget planning.

Frequently Asked Questions

What is the total FY 2027 budget request disclosed by Japan’s METI?
The Ministry of Economy, Trade and Industry requested JPY 7.79 trillion for the fiscal year beginning in April 2027, marking a 47% percent increase from the FY 2026 initial budget and FY 2025 supplementary budget combined. The request includes JPY 6.31 trillion under the “Strong and Prosperous Japan” investment framework. Major priorities include securing critical minerals and rare earths, strengthening chemical product supply chains, developing physical artificial intelligence, and introducing AI robots. Approximately JPY 680 billion is allocated for critical minerals, while approximately JPY 220 billion was newly requested for chemical supply-chain strengthening.