Key Facts
• U.S.-China tensions have heightened global focus on rare earth elements (REEs).
• China, the world’s largest REE producer, tightened export controls in April 2025.
• Japan plans test drilling for REEs near Minamitorishima in January 2026.
• The site lies 6,000 meters underwater and was discovered in 2012.
• Estimated reserves could meet global demand for hundreds of years.
• A 6,000-meter pipe for extraction was delivered in May 2025.
• Remote unmanned exploration equipment is expected from Norway by August 2025.
• Japan’s government aims to reduce its 60% reliance on Chinese REE imports.
• Collaboration with the EU on supply chain resilience began in July 2025.
• Nissan and Waseda University are developing REE recycling technology for 2030.
• Rare earths are critical for electric vehicles and other advanced technologies.
• High extraction costs and refining challenges remain significant hurdles.
• Japan’s 2010 experience with a de facto Chinese REE embargo drives diversification efforts.
• Experts highlight the need for advanced technology to address extraction and refining issues.
Summary
Amid ongoing U.S.-China trade tensions, rare earth elements (REEs) have gained strategic importance. China, the dominant global producer, has leveraged export controls, impacting industries worldwide. In response, Japan will begin test drilling for REEs near Minamitorishima in January 2026, targeting self-sufficiency and reduced reliance on China, which currently supplies 60% of Japan’s REE imports. The site, discovered in 2012, holds reserves potentially sufficient for centuries of global demand. Preparations, including specialized equipment delivery, are underway. Japan is also collaborating with the EU on supply chain resilience and advancing recycling technologies with Nissan and Waseda University. However, high extraction costs and technical challenges persist. Experts emphasize the need for innovation to overcome these barriers and secure a stable REE supply for critical industries.
