In 2026, the government allocated funding for rare earth development around Minamitorishima, while Shin-Etsu Chemical announced plans to build a new plant in Echizen, Fukui Prefecture. The government and Shin-Etsu will split the ¥35 billion total investment, with test drilling targeted for 2027 and full-scale production for 2028.
In February 2026, the Ministry of Economy, Trade and Industry announced the allocation of national funding for the commercial extraction of rare earth mud from waters around Minamitorishima, as well as subsidies for extraction and refining operations. In June, the government and Shin-Etsu Chemical Co., Ltd. announced that they would work together to build a new rare earth refining plant in Echizen. The total investment is ¥35 billion, with the government and Shin-Etsu each contributing ¥17.5 billion. The aim is to expand refining capacity for heavy rare earths and promote industrial self-reliance by reducing dependence on China.
Research into the waters around Minamitorishima is being conducted mainly by the Japan Agency for Marine-Earth Science and Technology (JAMSTEC) and national research institutes, with the aim of establishing DEE seabed mining technology. In the past, research by University of Tokyo researcher Yasuhiro Kato (加藤泰浩) suggested that deep-sea mud throughout the Pacific could serve as a rare earth resource, and high-concentration rare earth mud has been discovered within the Minamitorishima EEZ. The latest reports indicate a high proportion of heavy and medium-heavy rare earth elements (HREEs) in deep-sea mud from the deep seabed.
Shin-Etsu Chemical’s new plant is expected to produce a product lineup centered on heavy rare earths such as dysprosium, terbium and yttrium, while expanding an existing site and making use of its environmental and radiation-management systems. Long-term challenges include insufficient access to raw materials, the difficulty of separating heavy rare earths, price competition from China, the cost of environmental measures and securing skilled engineers.