The global race for rare earths reaches the ocean floor

The global race for rare earths is now extending to the ocean floor, as evidenced by the discovery of yttrium in deep-sea mud samples off the coast of Minami Torishima, Japan. Yttrium, an oxide found in small quantities in some foods, is a critical element used in various high-tech applications, including LEDs, mobile phone screens, camera lenses, and even in the production of laboratory diamonds.

Japan's Prime Minister, Sanae Takaichi, announced the discovery of large yttrium deposits in July 2026, emphasizing its importance due to its unique properties. However, extracting, refining, and utilizing this rare earth element poses significant challenges. China currently dominates the rare-earth sector, from extraction to magnet production, which has prompted the United States and Japan to seek alternative resources.

The United States and its allies are exploring deep-sea mineral resources, including the ocean depths and polar regions, to diversify their critical-mineral supply chains and reduce their exposure to external shocks. Japan, recognizing the strategic value of yttrium, is planning extraction trials in its EEZ (Exclusive Economic Zone), while also collaborating with the US and other allies through a memorandum of cooperation.

Despite the progress, the commercial viability of extracting rare earths from the seabed remains uncertain. The process is complex, requiring specialized facilities, technology, and expertise at every stage, from mining to refining and manufacturing. While Japan is preparing larger-scale tests to assess the economic feasibility of extracting rare earths from the ocean floor, questions remain about the cost and practicality of transporting, processing, and refining the extracted materials.