Japan finds cobalt and nickel reserves for the rest of the century and challenges China's powerful mining

Researchers from the University of Tokyo and the Nippon Foundation found 610.000 tons of cobalt and 740.000 tons of nickel, enough to cover their mining needs for the next 90 years

Japan discovered thousands of tons of cobalt and nickel, ensuring its supply of these metals for the rest of the century and part of the next. These metals are strategic raw materials, essential for the manufacture of batteries for electric cars, cell phones and other electronic devices. Therefore, having reserves is essential to participate in the mining market. The Japanese discovery challenges China, the powerful country in this sector.

Researchers from the University of Tokyo and the Nippon Foundation found 610.000 tons of cobalt and 740.000 tons of nickel, enough to cover their needs for the next 90 years respectively. as announced a few weeks ago. The working group explored the Pacific seabed, specifically an island located about 2.000 kilometers from Tokyo, belonging to the country's exclusive economic zone.

Exploration of minerals under the sea

The tons recorded are those that are estimated to be economically exploitable, the reserves. However, the quantity of polymetallic nodules is greater, around 230 million tons, from which cobalt and nickel are extracted.

Worldwide, there are about 8,3 million tons of cobalt reserves, according to the Cobalt Institute's 2023 annual report. This means that Japan's discovery represents just over 7% of the reserves identified to date. Until now, the Asian country had practically no weight in this market, where the Democratic Republic of Congo stands out, with almost half of the world's reserves, and Australia, with around 20% of reserves.

In fact, cobalt mining represents 90% of the Democratic Republic of Congo's exports, an activity crucial to the country's economy, according to the same report. However, this is where China comes in, which is the leader in refining this metal, the crucial step so that the raw material can be used in its various applications. Cobalt is mined in Africa, but Beijing dominates 72% of the processing industry, giving it a significant market advantage.

This element is used for electric car batteries, superalloys – used in gas turbine engines – and also in the petrochemical industry.

After Japanese exploration, the country intends to start extracting the nodules in March 2026, details the working group. “The production and refining of these metals is currently dominated by China and African countries, and Japan is almost entirely dependent on imports of these resources. The discovery of large deposits of cobalt and nickel brings hope that this may soon change”, say the Japanese organizations.

Economic and geopolitical impact of new reserves

In fact, Japan's idea is to create a joint venture with national companies to work both metals and sell them as their own products, without having to leave the country to be processed. The intention is to create an industry that allows them to supply themselves and control part of the supply. In other words, cut ties with China.

The European Union considers nickel and cobalt as strategic raw materials, a way of recognizing them as key elements for the economy. This is due to the fact that their demand will increase exponentially in the coming years and also because these resources are very concentrated, making it easy to have interruptions in supply. These raw materials have no affordable substitutes, so if there are problems in the value chain, trade can be slowed down or stopped. mining

In turn, nickel reserves are mainly in Australia, the United States, Brazil, Canada and China. But, once again, China has the largest number of nickel refineries in the world, with 10 in total, tying with Brazil's 10, according to data from the Nickel Institute. The Asian country has 22 smelters of this metal, while the Latin American country has 10, therefore, China continues to have a certain advantage in the nickel treatment industry. Nickel is used for batteries, alloys and stainless steel. mining

“These resources are critical to economic security. Demand for both will skyrocket in the coming decades by between 400% and 600% as battery-powered technology replaces oil and gas”, point out the Japanese researchers, who do not want their country to be left behind in this opportunity, nor to depend on China. mining