Supply chain security: Japan's rare earth extraction breakthrough counters China's export controls
Key Questions
What rare earth breakthrough did Japan achieve?
Japan successfully extracted rare-earth-rich mud from the Pacific seabed near Minamitori-shima, with commercialization targeted for 2030.
How has China's export policy affected Japan?
Rare earth exports to Japan dropped 34% year-over-year, with zero shipments of gallium and yttrium recorded in June, increasing pressure on F-35 production.
What steps is Japan taking to reduce drone supply chain dependence on China?
Terra Drone announced mass production of NDAA-compliant drone battery packs in Japan to cut reliance on Chinese suppliers.
Japan achieved deep-sea rare earth extraction breakthrough near Minamitori-shima, targeting 2030 commercialization. This challenges China's export controls (rare earth exports to Japan dropped 34% YoY, zero gallium and yttrium in June). Could reduce Japan's dependence for F-35 production. New economic pressure: yen depreciation, business bankruptcies, semiconductor raw material supply cuts, Takaichi sending envoy to China. Additionally, Terra Drone announced mass production of NDAA-compliant drone battery packs in Japan to cut reliance on Chinese suppliers, a concrete step in defense supply chain decoupling.