Japan and US Forge Deep-Sea Rare Earth Alliance to Challenge China's Dominance

Historic Alliance Formed to Secure Critical Minerals

In a significant move to reshape global critical mineral supply chains, Japan and the United States have formalized a strategic alliance aimed at extracting rare earth materials from deep-sea deposits. The partnership, solidified during US President Donald Trump's visit to Tokyo and his meeting with Japanese Prime Minister Sanae Takaichi on October 28, 2025, seeks to reduce the world's overwhelming reliance on China for these essential elements.

Prime Minister Takaichi announced on November 6, 2025, that the two nations would collaborate on developing rare earth mining in the waters around Minamitori Island. This uninhabited island, located approximately 1,900 to 2,000 kilometers southeast of Tokyo within Japan's exclusive economic zone, is believed to hold substantial rare earth reserves.

Minamitori Island: A New Frontier for Rare Earths

Geological surveys have confirmed the presence of rich rare-earth mud deposits at depths between 5,000 and 6,000 meters near Minamitori Island. Early estimates from 2012 suggested reserves of 6.8 million tons, enough to meet Japan's domestic demand for 230 years. By 2018, expanded surveys identified 15 types of rare earth elements totaling 16 million tons, including an estimated 730 years' worth of dysprosium and 420 years' worth of terbium.

The ambitious project outlines a clear timeline for extraction:

• Feasibility testing for raising rare earth mud from 6,000-meter depths is planned to commence in January 2026.
• If initial tests prove successful, trial operations capable of recovering 350 metric tons of mud per day are targeted to begin in January 2027.
• Full-fledged drilling operations are aimed for fiscal 2028.

Addressing China's Market Dominance

The primary motivation behind this partnership is to mitigate the economic and national security risks associated with China's near-monopoly on rare earth elements. China currently exerts significant control over the global rare earth sector:

• Mining: China accounts for approximately 69% of global rare earth mining production.
• Processing: Its facilities process over 85% to 90% of the world's rare earth elements.
• Magnet Manufacturing: China controls 92% to 93% of global rare earth permanent magnet manufacturing, crucial for electric vehicles, wind turbines, and defense systems.

This concentration creates vulnerabilities for technology-dependent nations, prompting the US and Japan to seek diversification strategies and ensure stable supply chains for critical applications such as advanced semiconductors, electric vehicle batteries, and military defense equipment. The deep-sea mining initiative is a key component of a broader US-Japan Critical Minerals Agreement, signed on March 28, 2023, which also covers minerals like cobalt, graphite, lithium, manganese, and nickel.