Japan delves into deep-sea mining: testing extraction methods for rare earth elements

Japan delves into deep-sea mining: testing extraction methods for rare earth elements

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Japan will do that start testing Deep-sea mining for rare earths is entering uncharted territory this month as concerns grow over security of supply and China’s tightening grip on crucial minerals.

The government-backed trial, which will run from January 11 to February 14, will take place in the waters around Minamitori Island, about 1,200 miles (1,900 kilometers) southeast of Tokyo.


The test aims to evaluate equipment that can retrieve up to 350 tons of sediment per day while monitoring environmental impacts on the seabed and on board the ship.

According to a December Reuters reports thisJapanese officials say a larger-scale trial could follow next year if the initial phase proves successful.

Tokyo’s move into deep-sea mining comes as concerns grow about exposure to Chinese export controls. China dominates the rare earth supply chain, accounting for about 70 percent of global production and more than 90 percent of refining capacity, according to Japanese government estimates.

Despite years of diversification efforts, Japan still sources about 60 percent of its rare earth imports from China and remains almost entirely dependent on Beijing for certain heavy rare earth elements.

These vulnerabilities have become more acute as China indicates it is taking a tougher stance on exports.

Earlier this week, Beijing announced restrictions on overseas sales of so-called “dual-use” items with potential military applications, a category could be interpreted broadly enough to include some rare earth elements, analysts say.

The announcement revived memories of 2010, when China quietly halted rare earth shipments to Japan amid a territorial dispute, disrupting production and forcing Tokyo to reassess its supply risks.

Estimates from the Japanese government suggest that the economic impact of another disruption could be severe. A three-month interruption in rare earth supplies could cost domestic companies more than $4 billion, while a one-year shutdown could shave nearly 0.5 percent of annual GDP.

Japan is also exploring possible cooperation with the US in the waters around Minamitori Island as part of a broader effort to build more resilient supply chains for rare earths and other crucial minerals.

The two countries have already done that committed last year to collaborate in mining, processing and supply chain development.

In addition to the current trial, Japan is also drawing up plans to build a dedicated processing facility on Minamitorishima by 2027 as part of its Strategic Innovation Promotion Program (SIP).

The facility would process mud from the seabed and be part of an end-to-end domestic supply chain for marine rare earths. A large-scale demonstration is planned for February 2027 to test the facility’s ability to extract up to 350 tons of rare earth mud per day.

“Ultimately, we will demonstrate the entire process of extracting rare earth metals from mud and then assess its economic viability,” said Shoichi Ishii, program director at the Strategic Innovation Promotion Program, told Nikkei Asia.

However, marine scientists and environmental groups continue to warn that deep-sea mining could cause long-term damage to ecosystems that are still poorly understood.

Despite these calls, a growing number of countries are pushing ahead with exploratory projects as competition for crucial minerals increases.

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Securities Disclosure: I, Giann Liguid, have no direct investment interest in any company mentioned in this article.

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