Rare earths have been confirmed in mud near Minamitorishima, with analysis indicating roughly equal proportions of light rare earths and medium/heavy rare earths. Meanwhile, as China’s export restrictions on Japan may continue for an extended period, Japanese companies are building stockpiles, developing alternative materials and diversifying their import sources.
Rare earths are important components of high-tech equipment, and China has long been identified as accounting for the majority of the global market. China’s dominance of supply could affect the availability of materials and components, prompting Japanese companies to strengthen stockpiles, develop alternative materials and diversify their procurement sources.
In 2026, the Chinese government introduced export controls on rare earths to Japan. Drawing on the lessons of 2010, Japanese companies are strengthening efforts to mitigate the impact. Some observers believe that, if the controls continue over the long term, they could become a key constraint on procurement.
In July 2026, the Cabinet Office and the Japan Agency for Marine-Earth Science and Technology confirmed the presence of rare earths in mud collected near Minamitorishima. Analysis indicated that the mud contained roughly equal proportions of light rare earths and medium/heavy rare earths. Japan’s dependence on China is particularly high for medium/heavy rare earths, highlighting the difficulty of reducing reliance on China, while also suggesting the possibility of developing a domestic supply.
Related rare-earth stocks include 東亜建設工業, 東洋エンジニアリング, 古河機械金属 and 岡本硝子, while trading companies participating in the Consortium for Promoting Rare-Earth Mud Development include 双日 and 豊田通商. Depending on future developments, the market may take a heightened interest in the sector.