Japan's Economic Security Trump Card: Minamitorishima Rare Earth Mining Gets Underway

World's First Deep-Sea 6,000m Rare Earth Test Drilling Begins in January 2026 On January 12, 2026, an exploration vessel departed from Shimizu Port (Shizuoka City) to conduct test drilling for rare earth-containing mud off Minamitorishima in the Ogasawara Islands, under a Cabinet Office-led project. Nikkei The vessel returned to port on February 14, and the collected mud samples will be analyzed in detail at domestic facilities, with test results to be published within 2026. Nikkei This test drilling involves lowering a mining machine connected to a mud lifting pipe from the deep-sea exploration vessel "Chikyu" to the seabed at a depth of approximately 6,000 meters, conducting connection and mining tests to confirm mud lifting to the vessel. Nikkei If successful, this will be a historic project representing the world's first rare earth mud recovery from the deep sea. Vast Resource Reserves and Strategic Value World's Highest-Grade "Ultra-High Concentration Rare Earth Mud" In 2013, Professor Yasuhiro Kato's laboratory at the University of Tokyo discovered that enormous quantities of "rare earth mud," a next-generation clean resource, exist in the waters around Minamitorishima within Japan's Exclusive Economic Zone (EEZ). U-tokyo The rare earth mud discovered at Minamitorishima is said to have a grade 20 times higher than Chinese land-based mines. Manganese Nodules Also Discovered In addition to rare earths, in June 2024, a detailed survey commissioned by the Nippon Foundation confirmed that manganese nodules are continuously distributed across a vast area exceeding 10,000 km². U-tokyo Manganese nodules are rich in cobalt and nickel, essential for electric vehicle batteries, with this promising area alone estimated to contain more than 75 years' worth of Japan's annual cobalt consumption. China's Rare Earth Export Restrictions and Japan's Response Deepening Dependence on China According to the U.S. Geological Survey, China accounts for 70% of global rare earth production and holds high market shares in ore refining and rare earth magnet production. Nikkei In April 2025, the Chinese government initiated strict export controls on seven types of rare earths—samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium—to prevent diversion to military use and ensure national security. The Sasakawa Peace Foundation In April, the Chinese government imposed restrictions on seven types of rare earths as a retaliatory measure against U.S. tariffs, resulting in a 70% year-on-year decline in rare earth magnet exports in May. This disrupted production of drive motors for EVs and hybrid vehicles (HVs), affecting Japan's automotive industry. Nikkei Potential for U.S.-Japan Joint Development At the Japan-U.S. summit held on October 28, 2025, Prime Minister Sanae Takaichi mentioned "U.S.-Japan joint development of Minamitorishima rare earth mud." U-tokyo Prime Minister Takaichi has positioned rare earths as one of the most critical economic security issues, emphasizing the extreme importance of securing diverse procurement channels. Concerns About Chinese Interference As U.S.-China tensions intensify in the western Pacific where Minamitorishima is located, Chinese naval activities have become more active. According to materials published by Japan's Ministry of Defense on June 17, 2025, the Chinese naval aircraft carrier "Liaoning" temporarily entered Minamitorishima's EEZ. The Sasakawa Peace Foundation This may have been intended to intimidate rare earth exploration activities. Furthermore, according to International Seabed Authority data, the Chinese state-owned enterprise "Beijing Pioneer Hi-Tech Development Co., Ltd." has acquired an exploration mining area for manganese nodules in the western Pacific high seas off Minamitorishima, with a contract period from 2019 to 2034. Isotop This mining area is set up to surround Japan's EEZ and is likely geologically continuous with resources within Minamitorishima's EEZ. Future Schedule and Path to Commercialization Phased Demonstration Tests Large-scale drilling tests are scheduled for February-March 2027, aiming to demonstrate the capability to recover 350 tons of mud per day. Nikkei SIP Program Director Shoichi Ishii of the Cabinet Office states, "We want to establish technology for technically extracting rare earth mud and calculate whether it can be economically viable." Aiming for Commercial Mining Around 2030 With China dominating most of the world's rare earth production, efforts to develop domestic resources and prepare for potential import disruptions are advancing in earnest, with commercial mining potentially beginning around 2030. Nikkei Funding Challenges In fiscal 2025, donations totaling 105,547,787 yen (332 donations, cumulative total of 206,924,394 yen) were received, surpassing 200 million yen for the first time. Based on this, detailed planning is currently underway for survey voyages in waters around Minamitorishima's EEZ (including high seas) from fiscal 2027 onwards. U-tokyo Since survey voyages for rare earth mud collection, which form the core of this research and development, require expenses exceeding 150 million yen per voyage, securing continuous funding remains a challenge. Focus on Related Companies Science and Technology Minister Kimi Onoda stated at a press conference on the 5th that "realizing a stable domestic rare earth supply system that does not depend on specific countries is extremely important for Japan's economic security." Expectations are high for Toyo Engineering, which is developing technology to recover rare earth mud from 6,000 meters below sea level under commission from JAMSTEC, as well as INPEX and Mitsui Ocean Development, which possess deep-sea resource development technology. Kabutan Other companies drawing attention as related stocks include Shin-Etsu Chemical, which has rare earth refining technology; Furukawa Machinery & Metal, which is advancing technology development for rare metal and rare earth mining; Shimadzu Corporation, which handles rare earth analysis; and Marubeni, which participates in development research for critical mineral raw material production projects including rare metals and rare earths in Australia. Conclusion The Minamitorishima rare earth development project is an extremely important initiative for reducing dependence on China and strengthening Japan's economic security. The world's first deep-sea 6,000m-class rare earth test drilling that began in January 2026 is both a technical challenge and holds the possibility of establishing Japan's new position as a resource superpower. Attention is focused on the results of future demonstration tests and progress toward commercial mining realization around 2030.