A $26.3 billion discovery in Japan could change the country’s economic fortunes: precious minerals on the seabed.
Extraordinary discovery in Japan: minerals worth $26.3 billion have been discovered. The sustenance of the national economy could therefore be guaranteed for at least the next decade.
In detail, a survey conducted by the Nippon Foundation and the University of Tokyo has discovered a rich field of manganese nodules on the seabed of the island of Minami-Tori-shima, about 1,900 kilometers from the capital Tokyo.
The nodules, located 5,700 meters below sea level, contain millions of tons of cobalt and nickel.
According to Nikkei Asia, they are thought to have formed over millions of years when metals transported by the ocean remained attached to the bones of fish, thus lying on the seabed.
Cobalt and nickel are two essential components to create electric vehicle batteries and are also used to make jet engines, gas turbines and in chemical processes. In the race for these raw materials that is unleashed among world powers, Japan could, therefore, gain an advantage thanks to the discovery and increase its role of dominance in the key sectors of future industrial development.
Nickel and cobalt in Japan, here is the discovery that can make the nation rich
The survey found about 610,000 tons of cobalt and 740,000 tons of nickel, which is equivalent to a truly impressive amount and with positive implications for the national economy.
A ton of cobalt is worth about $24,300, while nickel is priced at $15,497, according to market data from Trading Economics on November 21.
Doing some simple math, the 610,000 tons of cobalt found translates to a value of $14.8 billion, while the 740,000 tons of nickel are worth $11.4 billion.
Of course, as with any commodity, markets can fluctuate, which means that sometimes the minerals could be worth more (or less). Prices can change, for example, based on demand from the electric vehicle sector.
Japan’s Mining Future
Interestingly, these manganese nodules were first discovered in a 2016 survey, with experts claiming that many of them had formed around the teeth of a prehistoric shark, the Megalodon.
Following the latest investigation, Yasuhiro Kato, a professor specializing in resource geology at the University of Tokyo, said that the excavators now plan to extract “three million tons per year” from the deposits.
Starting in 2025, the team will use overseas mining vessels to lift several thousand tons of nodules per day.
According to Interesting Engineering, by using cobalt and nickel from the ocean, Japan will be able to reduce its dependence on other countries and meet its domestic demand for electric vehicle batteries.
“Ultimately, we expect that the results of our research will help stimulate Japan’s growth by creating a domestic supply chain that extends from resource extraction to manufacturing, making Japan a science, technology, and ocean-oriented nation in the truest sense of the word,” a University of Tokyo press release said.
Original article published on Money.it Italy 2024-11-22 08:04:32. Original title: Il Giappone ha fatto una scoperta da $26,3 miliardi che sosterrà la sua economia nei prossimi 10 anni
