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Japan's Deep-Sea Rare Earth Hunt to Shield Supply Chains from China

Financial Times Companies •
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Japan is ramping up efforts to extract rare earth minerals from the ocean floor to reduce dependence on China, which has repeatedly restricted exports of these critical materials used in electronics and defense. The Financial Times reports this strategic push comes after Beijing's export bans highlighted vulnerabilities in global supply chains. Deep-sea mining could provide a new source of rare earths like neodymium and dysprosium, essential for high-tech manufacturing. China currently dominates global production, controlling over 60% of processing capacity. Japan's initiative signals a major shift toward securing mineral resources beyond terrestrial sources, though technical and environmental hurdles remain. This move underscores the geopolitical stakes in securing critical minerals as tensions with China persist. Japan aims to establish a viable alternative supply chain within years, though commercial viability is uncertain. The strategy represents a significant geopolitical and economic gamble to reduce reliance on China for materials vital to national security and technological advancement.