(Nov 7): Japan and the US will join forces to extract rare earths in the waters around a small island in the Pacific, after the two allies struck an agreement to work together to cut their reliance on China for the critical mineral.
In January, the Japanese government will start a demonstration test to retrieve mud including rare earths from a depth of 6,000 metres near the island of Minamitorishima, according to Prime Minister Sanae Takaichi. Surveys have found that near the island, which is roughly 1,950 kilometres southeast of central Tokyo, there is abundant mud rich in rare earths, she said.
“Securing various ways to procure rare earths is important for both Japan and the US,” Takaichi said on Thursday in Parliament. “We will also consider concrete ways for Japan and the US to cooperate on rare earth development in the waters around Minamitorishima.”
The agreement on rare earth minerals was a key outcome from her meeting with US President Donald Trump in October, Takaichi said. The critical minerals, essential in making a host of products including chips, electric cars and weapons, have been a flash point in the global trade war as Beijing has used its dominance over the industry in its fight against the US.
Much like the rest of the world, Japan is heavily reliant on China for rare earths, and many of its key industries would face major headwinds should China cut off access.
See also: China escalates Japan spat with threats of economic reprisal
Japan’s Trade Minister Ryosei Akazawa, who led tariff negotiations with the US, warned last month that China’s export controls on rare earths could be used to slam the brakes on Japan’s carmaking industry.
Tokyo’s headaches over rare earths continue even as it’s tried to reduce reliance on China over the years, after Beijing blocked supplies over a territorial dispute in 2010.
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