Japan Pushes to Secure Rare Earths Beyond China

Japan is accelerating government–industry efforts to build a rare-earth supply chain independent of China, as Beijing's tightening export controls continue to pose a serious threat to economic security. Rare earths, 17 essential elements used in electric vehicles, semiconductors, and other advanced technologies, are particularly vulnerable because global deposits of the more scarce "heavy rare earths" are heavily concentrated in China.

Amid rising concerns over single-market dependence, the government plans to begin test drilling in January 2026 off Minamitorishima, Japan's easternmost island. Tokyo has also expressed its intention to cooperate with the United States on future development.

Still, securing a self-sufficient supply will not be easy, and efforts such as diversifying procurement sources must continue steadily.

Breaking New Ground in Ultra-Deep Extraction

"We are focused on moving the project forward step by step," said Shoichi Ishii, Program Director of the Cabinet Office Strategic Innovation Promotion Program (SIP). His office oversees the government-led test drilling off Minamitorishima.

The project's first phase is a world-first attempt. It involves retrieving mud rich in rare-earth minerals from approximately 6,000 meters beneath the ocean surface using specialized equipment mounted on a research vessel. The system is foreign-made and unlike anything Japanese engineers have used before.

China, which monopolizes key production technologies, cannot be expected to provide technical support. "A perfect success on the first try may be difficult," Ishii acknowledged.

Once brought to the surface, the sediment will be processed through separation and refinement tests to extract the rare-earth elements.

If the initial phase proceeds as planned, the project will shift in February 2027 to a full-scale demonstration of a large offshore drilling. When fully operational, the system will be capable of processing up to 350 tons of sediment per day. This stage is designed to assess both the size of the deposits and their economic feasibility.

Some researchers speculate that the seabed around Minamitorishima may hold enough rare earths to supply global demand for "several hundred years." SIP, however, adopts more measured language, noting only that the deposits appear "sufficient for industrial-scale development."

Notably, the area is thought to be especially rich in heavy rare earths, the scarcer and more strategically valuable subset of the 17 rare-earth elements.

Toward Self-Sufficiency

China currently accounts for around 70% of global rare-earth production and has repeatedly used its dominance as diplomatic leverage. Most recently, Beijing introduced new export restrictions following tensions with Western countries. These disrupting supply chains worldwide and forcing some Japanese automakers to halt production.

*Japan's easternmost island, Minamitorishima, Tokyo.*

In an effort to reduce this dependence, Prime Minister Sanae Takaichi signed an agreement with the US in October 2025. It commits both countries to cooperating on securing supplies of rare earths and other critical materials. The two governments will establish a ministerial-level dialogue to advance joint investment and related initiatives. Tokyo has also signaled its intention to work with Washington on the Minamitorishima project and is now examining concrete steps toward that goal.

Private-sector efforts to diversify supply sources are also gaining traction. In late October, Sojitz imported heavy rare earths from Australia. It was the first time Japan had obtained these materials from a country other than China. Other overseas investment projects aimed at securing non-Chinese supply are likewise starting to emerge.

Despite these developments, Japan still depends on China for roughly 60% of its rare-earth imports. Government officials warn that Beijing may attempt to hinder Japan's efforts to build an autonomous supply chain. In addition, domestic companies reliant on Chinese imports could be reluctant to cooperate out of fear that China might cut off supplies. As one official noted, "achieving self-sufficiency will not be easy."

Thinking Long Term

Kotaro Shimizu, chief researcher at Mitsubishi UFJ Research and Consulting, noted that companies simply will not buy non-Chinese rare earths at inflated prices. That is why development has stalled. He added, "Given the enormous losses caused by export restrictions, Japan needs to start thinking long-term about how government and industry can work together to support the market."

(Read the article in Japanese.)

Author: Ryotaro Fukuda, The Sankei Shimbun