Japan and the US Collaborate on Rare-Earth Resource Development

Japan and the United States are set to confirm a joint initiative aimed at developing rare-earth resources off Minamitorishima during a summit scheduled for March 19, 2026. This initiative includes discussions on establishing a marine mineral development working group. The collaboration is primarily motivated by Japan's desire to reduce its dependence on Chinese rare-earth supplies, which currently dominate over 90% of the global output. Japanese Prime Minister Sanae Takaichi is expected to sign a memorandum of understanding with US President Donald Trump during the summit, as reported by the Sankei Shimbun.

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Experts have raised concerns regarding the practical feasibility of deep-sea rare-earth mining. The costs associated with such mining operations are significantly higher—estimated to be ten times that of land-based mining—due to the high-pressure environment on the seabed. Wu Chenhui, an independent rare-earth analyst, emphasized that without China's established industrial chain, the US and Japan would face challenges in finding downstream buyers for their products. Additionally, Japan has limited experience in developing its own rare-earth resources, which raises questions about the maturity of extraction technologies and the overall commercial viability of the initiative.

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Chinese Foreign Ministry spokesperson Lin Jian commented on Japan's plans, noting that similar reports have surfaced in recent years. Takaichi has expressed hopes that US participation could accelerate progress in the development of rare-earth resources. Despite the collaboration, experts like Wu have pointed out that both countries lack a complete industrial chain necessary for effective production, as China holds critical patented extraction technologies.

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Critics argue that Japan's reliance on the US for its rare-earth supply chain poses risks. Gao Lingyun, a research fellow at the Chinese Academy of Social Sciences, noted that Japan is simultaneously seeking to build supply chains with countries such as Canada and France, indicating a recognition of the risks associated with depending solely on the US. This diversification strategy reflects Japan's acknowledgment of potential vulnerabilities in its supply chain.

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In a related move, Japan Australia Rare Earths has secured a renewed supply agreement with Australia's Lynas Rare Earths, committing to purchase 5,000 tons of neodymium-praseodymium annually. This agreement aims to strengthen Japan's access to critical rare-earth materials, further illustrating Japan's strategy to diversify its sources of rare-earth supplies.

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As Japan and the US prepare for their summit, the outcomes of their discussions on rare-earth resource development will be closely monitored. The effectiveness of their collaboration in overcoming the challenges posed by high costs and technological limitations will be crucial for the future of their rare-earth supply chains.

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