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Japan mines Pacific Ocean mud for rare earths to counter China’s chokehold

Financial Times Asia
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Japan has begun large-scale extraction of rare earth elements from deep-sea Pacific Ocean mud near Minamitorishima Island to reduce dependence on China, which controls 90% of global supply. The project, operational since early 2026, uses advanced robotic mining technology to harvest mud deposits rich in dysprosium and terbium—critical for quantum computing, EVs, and defense systems. Japan’s state-backed consortium, including Toyota and NEC, aims to process 10,000 tons annually by 2030, cutting reliance on Chinese imports by 40% within five years. The initiative follows a 2018 discovery confirming high concentrations of rare earths in the region, with extraction costs now viable due to rising prices and geopolitical tensions. Analysts warn of environmental risks and technical hurdles, but Japan frames the move as a strategic necessity to secure tech supply chains amid U.S.-China trade conflicts.
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Source: Financial Times Asia

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