6,000 Meters Under the Pacific, Japan Seeks Independence From China on Rare Earths

It’s called Minamitorishima, and it is a small atoll in the Pacific Ocean. It is one of the most isolated islands in the vast Japanese archipelago, so much so that it is almost 2,000 kilometers southeast of Tokyo. However, from the depths of the surrounding seas could emerge a wonderful gift for the country’s economy.

It is there, up to 6,000 meters deep under the sea, that a group of Japanese researchers achieved a truly impossible mission: recovering sediments containing rare earth elements from one of the most promising underwater deposits discovered in recent years.

The feat is expected to strengthen Japan’s role in the increasingly crucial rare earths sector, a central part of the trade war between China and the United States. Indeed, Japan is the only major industrial country which, while remaining partially exposed, has managed to significantly reduce its dependence on Beijing.

The “Mission Impossible” in the Pacific seabed

Operation Minamitorishima, carried out with the deep-sea scientific drilling ship Chikyurepresents the world’s first attempt at sampling at such depths.

The Japanese government called this result “an important milestone in terms of economic security and overall maritime development”, stressing that ongoing analyzes will now need to determine the precise quantity and quality of the elements present in the extracted samples. But beyond the technical aspect, the value of the company is above all strategic.

Rare earths constitute a group of 17 metals essential to advanced technologies. They are engaged in the production of high-strength magnets for electric vehicles, wind turbines, electronic devices, semiconductors, radar systems, missiles, etc. Elements such as dysprosium and yttrium, of which the area around Minamitorishima contains reserves estimated at 730 and 780 years of consumption respectively, have become critical materials for modern industry and defense. According to some estimates, the Japanese underwater deposit could contain more than 16 million tonnes of rare earths, which would constitute the third largest reserve in the world.

The shock of 2010 and strategic change

Tokyo’s race toward mining self-sufficiency didn’t start today. It has its roots in 2010, when a diplomatic crisis with Beijing exposed Japan’s vulnerability.

After an incident between a Chinese fishing boat and two Japanese coast guard units near the Senkaku Islands, China blocked exports of rare earths to Japan for about two months. At the time, Tokyo depended on Beijing for more than 90% of its imports of these materials. The embargo caused panic in all sectors, particularly in the automotive sector, and global prices for rare earths increased tenfold in one year.

This crisis represented a strategic shock. Unlike other industrialized countries, which considered this episode as a contained or temporary tension during those years, Tokyo interpreted it as a structural signal. Overreliance on a single supplier, a regional rival, posed an existential risk for an advanced and highly industrialized economy.

Since then, Japan has radically changed its strategy. The government has launched a set of extraordinary measures: investments in technologies to reduce the use of rare earths, development of alternative materials, strengthening of recycling, acquisition of stakes in mines abroad, particularly in Australia, with the support of the Lynas group, and creation of strategic stocks.

Thanks to this policy, Japan’s dependence on China has continued to decline. This rate has reached around 50 percent in recent years, a level that no other country has been able to match. The decisive factor in the strategy’s success was its integrated approach.

Japan not only sought new suppliers, but also worked on several fronts simultaneously. Japanese companies, with government support, have invested in developing magnets that use less dysprosium. At the same time, research programs on alternative materials were encouraged. This aspect is crucial: reducing dependence means not only changing suppliers but also reducing structural needs.

Inventory, innovation and competitive advantage

Another key factor, analysts say, is inventory. The Japanese government has created strategic reserves of rare earths to mitigate any temporary disruption in supply. This seemingly simple choice, however, requires a long-term vision and availability of capital that not all countries have had the will or the capacity to mobilize. Inventories do not eliminate dependency, but they provide valuable time in the event of a shock, allowing the industry to adapt without immediate disruption.

Added to these elements is a structural characteristic of the Japanese economy: strong technological integration. Japan is not only an importer of rare earths, but an advanced player in their transformation into high value-added components. This expertise has facilitated innovation and reduction in the intensity of use of critical materials. In other words, the ability to do more with less has become a competitive advantage.