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Japan Discovers Massive Metal Reserves: Threatens China's Dominance
By Camilla Jessen | August 2, 2024
Japan has made a major discovery of thousands of tons of cobalt and nickel, enough to meet its needs for these metals for the rest of this century and beyond.
According to researchers from the University of Tokyo and the Nippon Foundation, this find could shift the global balance of power in the critical metals market, which is currently dominated by China.
A Game-Changing Discovery
The newly discovered reserves include 610,000 tons of cobalt and 740,000 tons of nickel.
These metals were found on the seabed of the Pacific Ocean, about 2,000 kilometers from Tokyo, within Japan’s exclusive economic zone.
Cobalt and nickel are essential for making batteries for electric cars, smartphones, and other electronic devices, so having a steady supply is vital.
Until now, Japan has relied heavily on imports for these metals, with countries like the Democratic Republic of the Congo (DRC) and Australia being key suppliers.
But this discovery could change that, allowing Japan to meet its own needs and reduce its reliance on foreign sources.
The new reserves could cover Japan's cobalt needs for the next 75 years and its nickel needs for the next 11 years.
The discovery is significant on a global scale.
According to the Cobalt Institute's 2023 report, the world currently has about 8.3 million tons of cobalt reserves.
Japan’s new find adds more than 7% to that total.
While the DRC dominates cobalt mining, China plays a crucial role in processing, controlling 72% of the world’s cobalt refining industry.
The cobalt and nickel found by Japan are part of polymetallic nodules, with a total quantity estimated at 230 million tons. These nodules contain other valuable metals as well, which could further boost Japan’s position in the global market.
Japan's Next Steps
Japan plans to start mining these reserves by March 2026, aiming to reduce its dependence on Chinese processing.
The government is working to set up a joint venture with Japanese companies to manage the extraction, processing, and sale of these metals within Japan.
This move is part of a broader strategy to secure key resources and strengthen economic security, especially as demand for battery-powered technology is expected to increase dramatically in the coming decades.
By developing its own processing capabilities, Japan hopes to lessen its reliance on China, which not only dominates cobalt refining but also has a strong presence in nickel processing.
"These resources are critical for economic security. Demand for both is set to soar by 400-600% in the coming decades as battery-powered technology replaces oil and gas," say the Japanese researchers, who do not want their country to be left behind in this opportunity, or to become dependent on China.
