Amid global economic uncertainty spurred by Donald Trump’s tariffs, Japan has found a substantial economic boost in the form of vast cobalt and nickel reserves located near Minami-Tori-shima, a remote island over 1,800 kilometers from Tokyo.
The discovery, made in 2024 by researchers from the University of Tokyo in collaboration with the Nippon Foundation, is now valued at a staggering $30.6 billion, offering Japan a strategic advantage as global trade continues to be impacted by tariff wars.
The discovery, buried beneath the ocean floor, includes an estimated 610,000 metric tons of cobalt and 740,000 metric tons of nickel—critical materials for electric vehicle (EV) battery production. This hidden treasure, once valued at $26.3 billion, has surged in worth as cobalt prices have increased to $33,925 per ton and nickel prices have climbed to $13,388 per ton, further driven by tight global supply chains.
While President Trump’s tariffs, which have caused significant disruptions in global trade, particularly impacting Japan with a 24% customs duty on its exports, have created challenges for many nations, Japan’s newfound mineral wealth offers a strategic lifeline. The reserves provide Japan with a unique opportunity to reduce its reliance on foreign mineral supplies and secure its position as a self-sufficient player in the global tech and automotive industries.
The University of Tokyo views this discovery as more than a financial windfall. It is seen as a crucial step towards establishing Japan as an independent mineral powerhouse, with the potential to build a domestic supply chain for cobalt and nickel, ensuring stability in Japan’s high-tech manufacturing sector. Japan aims to leverage these resources as part of its broader goal to become a leading science-technology and ocean-oriented nation.
As global markets continue to navigate the fallout from trade tariffs, Japan’s discovery offers a rare source of optimism, positioning the country to emerge as a key player in the future of clean energy and electric vehicles.
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