News On Japan

Can Japan Become a Rare Earth Power?

TOKYO - Japan’s ambitions to become a rare earth powerhouse are gaining attention as China tightens its grip on global supply chains. Despite a mid-June agreement between the U.S. and China, rare earth supplies remain constrained, and Japan’s enterprises—alongside global manufacturers—continue to face uncertainty.

China's decision to restrict the export of seven key rare earth elements in April has been widely viewed as a geopolitical move to exert leverage in negotiations, particularly against the United States. While Chinese authorities claim export applications are still accepted, the high bar for approval has effectively choked off supply. The affected elements, including dysprosium and terbium used in high-performance magnets, are essential to electric vehicles (EVs), wind turbines, and advanced defense systems.

According to Tomoji Ohara of the Sasakawa Peace Foundation, China’s strategy is clear: by controlling rare earths, it maintains leverage over countries like the U.S. and its allies. “This is not about whether China can extract the resources—it's about who they let access them,” he said.

The impact is already visible. American automakers have reported production delays due to material shortages, while Japanese companies face canceled deals because of newly imposed documentation requirements by Chinese exporters.

Yet Japan may have a solution beneath its own waters. A Japanese research team led by University of Tokyo Professor Kentaro Nakamura discovered in 2012 that the seabed around Minamitorishima, Japan’s easternmost island, contains mud rich in rare earth elements—potentially hundreds of years’ worth of global demand. Initial surveys show that this deep-sea mud contains all seven of the rare earths currently under Chinese export control, and in far higher concentrations than land-based sources.

“Even a small section of the Minamitorishima area contains over 16 million tons of rare earth-rich mud,” said Nakamura. “If the entire Exclusive Economic Zone is surveyed, Japan could possess the world’s largest reserves.”

Still, the technological and financial hurdles are significant. Extracting resources from 6,000 meters below the ocean surface is no simple task. Japan has already tested systems capable of collecting seabed mud at 2,000 meters, and this fiscal year, it plans to attempt a 6,000-meter test near Minamitorishima. A consortium involving government agencies and engineering firms such as Toyo Engineering is developing specialized equipment to stir and pump the high-viscosity mud to the surface.

Unlike China’s land-based deposits, which are associated with radioactive elements such as thorium, Japan’s seabed mud is free of harmful byproducts. This gives Japan a significant environmental advantage, as it can extract and refine rare earths domestically without the complications posed by radiation regulations.

China’s interest in the region is intensifying. Two of its aircraft carriers were recently spotted sailing near Minamitorishima within Japan’s EEZ. Satellite and maritime tracking reveal that China is actively surveying the seafloor in nearby areas and has already obtained exploration rights for polymetallic nodules from international bodies.

Chinese state media continues to question Japan’s sovereignty over remote islands like Minamitorishima, suggesting that Japan may not have full rights to exploit resources within its surrounding waters. If China begins large-scale deep-sea mining, it could challenge Japan not only economically, but also geopolitically.

Yutaka Yoshitake, editor of Rare Metal Weekly, warned that Japan’s delay in resource development could allow China to establish dominance in deep-sea extraction as well. “If China proves its capability first, it will set the international precedent,” he said.

Nakamura emphasized that Japan must act now while it still has technical and industrial capacity. “The entire value chain still exists in Japan—from extraction to magnet production to end-use industries. This is a rare opportunity.”

For now, Japan faces a critical choice: whether to continue evaluating the economic viability of deep-sea mining or to treat it as a strategic national project worth subsidizing. Experts stress that without strong state backing, private companies are unlikely to shoulder the cost and risk of developing such unprecedented technologies.

The stakes are high. Rare earths are not only essential to next-generation EVs and renewable energy but are also crucial to military and aerospace technologies.

Source: TBS

News On Japan
POPULAR NEWS

Typhoon No. 9 Bavi had intensified into a violent typhoon near the Truk Islands by the afternoon of July 4 and is forecast to strengthen further before passing near Guam and Saipan, with the storm potentially approaching Okinawa and the Sakishima Islands from around July 10 to July 11.

Former Nissan Motor Chairman Carlos Ghosn said the automaker is in a "state of emergency" and signaled he would be willing to return as chief executive officer, arguing that only a true decision-maker in the CEO role could rescue the company.

The entire Negishi Housing Area in Yokohama, Kanagawa Prefecture, has been returned to Japan for the first time in 79 years, ending its use as a residential district for U.S. military personnel and their families.

Strong earthquakes have continued to shake parts of Japan in recent weeks, with 11 temblors measuring lower 5 or above on the Japanese seismic intensity scale recorded across the country since April 2026.

A Kintetsu Railway train derailed inside Kyoto Station on the morning of June 29, forcing partial suspensions on the Kintetsu Kyoto Line for the rest of the day and causing long delays that hit commuters, students and tourists.

MEDIA CHANNELS
         

MORE Business NEWS

Japan's Government Pension Investment Fund said its investment operations for fiscal 2025 generated a surplus of more than 41 trillion yen, lifted by gains in domestic and overseas stock markets.

Workers inspecting screws are a familiar sight in Tokyo’s Ota Ward, where small factories line the streets, but manufacturers say rising costs are squeezing operations despite signs of strength elsewhere in the economy.

Tokyo stocks staged a sharp intraday reversal on July 3, with the Nikkei 225 rebounding from an early drop of more than 1,100 points to close more than 1,000 points higher as investors bought back semiconductor and AI-related shares while rotating into lagging value stocks.

Japan’s long-term interest rate, which affects fixed-rate housing loans and other borrowing costs, climbed to its highest level in about 30 years as concerns grew over the fiscal outlook under the Takaichi administration.

Tokyo stocks fell sharply on July 2 as a global reversal in semiconductor and AI-related shares dragged the Nikkei 225 below 70,000, while the broader TOPIX held firm as investors rotated into banks, software, airlines, trading houses and other lagging value shares.

Japan’s average roadside land price rose 2.9% from a year earlier, marking the steepest increase on record, as inbound tourism and redevelopment pushed up land valuations across the country.

More than 2,500 food items will become more expensive in July, with bread, instant noodles and other processed foods among the main categories affected as Middle East tensions and the weaker yen continue to push up costs.

Tokyo stocks edged higher on June 29 as investors bought back selected shares after a sharp AI-led selloff, but gains were capped by caution over high technology valuations, Middle East tensions and a weakening yen that fell to its lowest level against the dollar since 1986.