A significant find in Japan last year has seen its valuation soar to more than $30 billion, even amid the wave of tariffs recently introduced by Donald Trump.
In a 2024 study carried out by the Nippon Foundation in partnership with the University of Tokyo, it was revealed that the seabed surrounding Minami-Tori-shima island is home to approximately 610,000 metric tons of cobalt and 740,000 metric tons of nickel.
This discovery is of great importance due to the fact that these materials are essential for the production of electric vehicle (EV) batteries.
This amount equates to 11 years of domestic consumption, indicating that Japan could be in a strong financial position in the upcoming years.
Nikkei Asia reported that 230 million tons of the rare minerals were found between April and June.
The University of Tokyo issued a press release stating, “Ultimately, we expect that our research outcomes will help boost Japan’s growth by establishing a domestic supply chain stretching from ‘resource-mining’ to ‘manufacturing’, and make Japan a science-technology, and ocean-oriented nation in a true sense of word.”
Since Trump’s return to the presidency in January, he has enforced numerous tariffs, leading to a notable six percent drop in the FTSE 100.
Recently, the 47th President announced a global 10 percent ‘baseline’ tax, with higher rates targeting a list of 60 countries he has labeled as ‘worst offenders.’
Countries faced with elevated custom tariffs include Japan (24 percent), South Africa (30 percent), and Vietnam (46 percent).
Japan presents a unique case, given the potential impact of these tariffs on the mineral discovery, yet Trump’s policies have contributed to increasing the value of this rare earth find.
Before Trump’s policy changes, the rare find was valued at a colossal $26,290,780,000, a figure that has since risen.
According to the FTSE 100, the price of one ton of cobalt is $33,925, meaning the 610,000 tons found is now valued at an astounding $20,694,250,000.
Meanwhile, nickel is priced at $13,388 per ton, resulting in a value of $9,907,120,000 from the 740,000 tons discovered.
In total, this results in a valuation of $30,601,370,000 for the rare earth find—a significant increase from last year’s numbers.
Interesting Engineering suggests that by utilizing the cobalt and nickel from the ocean, Japan can reduce its reliance on foreign sources and meet the internal demand for EV batteries.