New front in race for rare earths opens under the sea

Deep beneath the Pacific Ocean, at a staggering depth of nearly 6,000 meters, a new race for critical minerals is unfolding. The United States and Japan are joining forces in a pioneering project aimed at extracting rare-earth minerals from the seabed, a venture targeting the remote Minamitorishima Island. Japan's research vessel Chikyu has already demonstrated the feasibility of this endeavor by bringing 50 tonnes of rare-earth-bearing mud to the surface in early 2026.

A more ambitious trial slated for 2027 seeks to dredge approximately 350 tonnes daily, paving the way for potential industrial-scale production.

The allure of this endeavor lies in the strategic value of the minerals themselves. Deep-sea deposits harbor a diverse array of elements, including manganese, nickel, cobalt, copper, and rare-earth elements. These substances are indispensable to a wide range of technologies, from batteries and electric vehicles to high-performance magnets, electronics, renewable-energy systems, robotics, aerospace, and military defense applications.

Notably, some of the most abundant nodules are found in the Pacific's Clarion-Clipperton Zone (CCZ), while crusts can also be discovered on submarine mountains and around hydrothermal vents.

However, the path to extracting these resources from such vast depths is fraught with significant challenges. Mining several kilometers below the ocean's surface necessitates the deployment of specialized vessels, remotely operated machinery, sophisticated collection systems, and robust pipelines capable of withstanding immense pressure.

Currently, only a select few entities in Japan, Canada, Switzerland, and the United States possess the requisite capabilities. Moreover, identifying new deposits is only the first step; countries must also develop the infrastructure for separating, refining, and processing these materials into usable components.

Economic considerations further complicate the equation, with the proposed Japan-US operation estimated to cost roughly three times more than comparable land-based mining operations in China. Despite these formidable barriers, both nations are increasingly recognizing the strategic importance of seabed minerals, driven by China's dominant position in global rare-earth mining and processing.

According to the International Energy Agency (IEA), China accounts for about 60% of global mined production of magnet rare earths, 91% of refined output, and 94% of sintered permanent-magnet production. In response to this geopolitical rivalry, Washington has proposed a lease auction covering federal seabed waters around the Northern Mariana Islands, expanding the US's presence in Pacific mining activities.

However, the race into deep-sea mining is entering uncharted territory, both environmentally and legally. Deep-ocean ecosystems are still poorly understood, and mining activities could inflict irreversible damage, disturbing habitats, releasing sediment plumes, and disrupting species with limited recovery prospects. Beyond national jurisdictions, the question of resource ownership and exploitation rights remains unresolved.

Under international law, the deep ocean floor is considered the common heritage of humankind, governed by the United Nations Convention on the Law of the Sea, which delegates management to the International Seabed Authority. Negotiations to establish detailed rules for commercial exploitation and benefit-sharing are ongoing as of August 18, 2026.