His name is Minamitorishima, and it is a tiny atoll in the Pacific Ocean. It is one of the most remote islands in Japan’s extensive archipelago, so much so that it lies almost 2,000 kilometers southeast of Tokyo. However, from the depths of the surrounding seas may come a huge gift for the country’s economy.
It was there, at a depth of 6,000 meters below the sea surface, that a group of Japanese researchers managed to accomplish an almost impossible mission: extracting sediments containing infrequent 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 essential infrequent earths sector, which is at the center of the trade war between China and the United States. Indeed, Japan is the only major industrialized country that, while remaining partially exposed, has managed to significantly reduce its dependence on Beijing.
“Mission Impossible” at the bottom of the Pacific Ocean
Operation Minamitorishima conducted using a deep-sea scientific drilling vessel Chikyuis the world’s first attempt to collect samples at such depths.
The Japanese government called the result “a significant milestone in terms of economic security and overall marine development,” stressing that ongoing analysis will now need to determine the exact quantity and quality of elements present in the extracted samples. However, apart from the technical aspect, the value of the project is primarily strategic.
Occasional earth metals are a group of 17 metals key to advanced technologies. They produce high-strength magnets for electric vehicles, wind turbines, electronic devices, semiconductors, radar systems, rockets and more. Elements such as dysprosium and yttrium, whose reserves in the area around Minamitorishima are estimated to be 730 and 780 years elderly respectively, have become critical materials for current industry and defense. According to some estimates, Japanese submarine deposits may contain more than 16 million tons of infrequent earth elements, making them the third largest reserve in the world.
The shock of 2010 and strategic change
Tokyo’s race towards mining self-sufficiency did not start today. It has its roots in 2010, when a diplomatic crisis with Beijing bluntly exposed Japan’s vulnerability.
Following an incident between a Chinese fishing boat and two Japanese coast guard vessels near the Senkaku Islands, China blocked infrequent earth exports to Japan for about two months. At the time, Tokyo depended on Beijing for more than 90 percent of its imports of these materials. The embargo caused panic in various industries, especially the automotive sector, and global prices for infrequent earth elements increased tenfold in a year.
This crisis was a strategic shock. Unlike other industrialized countries at the time, which viewed the episode as a circumscribed or fleeting tension, Tokyo interpreted it as a structural signal. Overdependence on a single supplier, and a regional rival at that, was an existential risk for an advanced and highly industrialized economy.
Since then, Japan has radically changed its strategy. The government has launched an extraordinary package of actions: investing in technologies that reduce the operate of infrequent earth elements, developing alternative materials, improving recycling, taking over shares in mines abroad – especially in Australia, with the support of the Lynas Group – and creating strategic stocks.
As a result of this policy, Japan’s dependence on China systematically decreased. In recent years it has reached around 50 percent, a level that no other country has been able to match. The factor determining the success of the strategy was its integrated approach.
Japan was not only looking for fresh suppliers, but also acted on many fronts simultaneously. Japanese companies, with government support, have invested in the development of magnets that operate less dysprosium. At the same time, research programs on alternative materials were promoted. This aspect is crucial: reducing dependencies means not only changing suppliers, but also reducing structural needs.
Inventories, innovation and competitive advantage
According to analysts, another key factor is inventories. The Japanese government has established strategic reserves of infrequent earth elements to ease fleeting supply disruptions. This seemingly straightforward choice, however, requires a long-term vision and the availability of capital that not all countries were willing or able to mobilize. Inventories do not eliminate dependencies, but they provide valuable time in the event of a shock, allowing the industry to adapt without immediate downtime.
In addition to these elements, there is a structural feature of the Japanese economy: high technological integration. Japan is not only an importer of infrequent earth elements, but an advanced player in transforming them into high-value-added components. This expertise has facilitated innovation and reduced operate of critical materials. In other words, the ability to do more with less has become a competitive advantage.