Frontline 30 stocks of 'rare earths'! Surging over 100% since the beginning of the year due to export restrictions; high expectations for domestic development to safeguard high-tech industries
Rare earth elements, which are essential in manufacturing electric vehicle (EV) motors, defense equipment, and high-tech products'Rare earth' related stocks have surgedAccounting for 70% of global production, China is implementingStrengthened export controls against Japan and Initiation of resource development within JapanThese significant developments on both the offensive and defensive fronts are creating favorable tailwinds. The main factors behind the rise can be summarized in the following three points.
1. China’s export restrictions targeting Japan and its national policy initiatives
On January 6, 2026, the Chinese government announceda complete ban on exports to Japan of 'dual-use' items that could potentially be diverted for military purposesIt was announced that initially there was no mention of rare earth elements. However, reports suggest that the Chinese government has halted export license approvals for civilian-use rare earths to Japan, effectively imposing restrictions, causing related stocks to soar. There is growing interest in moves towards 'reducing dependence on China.' The Group of Seven (G7) and others held a ministerial-level meeting on critical minerals, including rare earths, in Washington on the 12th to enhance cooperation."Reduce dependency on China with a sense of urgency."They have reached an agreement and are beginning to align globally.
On January 6, 2026, the Chinese government announceda complete ban on exports to Japan of 'dual-use' items that could potentially be diverted for military purposesIt was announced that initially there was no mention of rare earth elements. However, reports suggest that the Chinese government has halted export license approvals for civilian-use rare earths to Japan, effectively imposing restrictions, causing related stocks to soar. There is growing interest in moves towards 'reducing dependence on China.' The Group of Seven (G7) and others held a ministerial-level meeting on critical minerals, including rare earths, in Washington on the 12th to enhance cooperation."Reduce dependency on China with a sense of urgency."They have reached an agreement and are beginning to align globally.
2. Could trial drilling of rare earth mud off Minami Torishima be a game changer?
Located at Japan's easternmost point,a pilot drilling project for the commercialization of rare earth mud off Minami-Torishima Islandhas officially begun.On the 12th, the exploration vessel 'Chikyu' departed from Shimizu Port (Shizuoka City).In the area off Minami Torishima, mud containing rare earth elements such as dysprosium, neodymium, and gadolinium has been discovered, raising hopes for 'domestic production.' Unlike terrestrial ores, rare earth mud from the seabed contains almost no radioactive materials like thorium or uranium."Clean Rare Earths"If successful, this is expected to be a historic step for Japan towards becominga 'resource-rich nation.' However, significant costs are anticipated in lifting the mud (technology to bring up the mud) and refining (the process of removing impurities), drawing attention to the technologies of plant engineering companies.However, it is believed that there are considerable costs associated with dredging (the technology for raising mud) and refining (the process of removing impurities), leading to increased attention on the technologies of plant engineering companies and others.
Located at Japan's easternmost point,a pilot drilling project for the commercialization of rare earth mud off Minami-Torishima Islandhas officially begun.On the 12th, the exploration vessel 'Chikyu' departed from Shimizu Port (Shizuoka City).In the area off Minami Torishima, mud containing rare earth elements such as dysprosium, neodymium, and gadolinium has been discovered, raising hopes for 'domestic production.' Unlike terrestrial ores, rare earth mud from the seabed contains almost no radioactive materials like thorium or uranium."Clean Rare Earths"If successful, this is expected to be a historic step for Japan towards becominga 'resource-rich nation.' However, significant costs are anticipated in lifting the mud (technology to bring up the mud) and refining (the process of removing impurities), drawing attention to the technologies of plant engineering companies.However, it is believed that there are considerable costs associated with dredging (the technology for raising mud) and refining (the process of removing impurities), leading to increased attention on the technologies of plant engineering companies and others.
3. Increase in demand driven by advanced technologies (AI, robotics, EVs)
Long-term sustained demand is also forecasted.Powerful magnets are required for AI server cooling fans and precision equipment, causing a sharp rise in demand for materials such as neodymium. The spread of humanoid and industrial robots is also likely to expand demand for high-performance motors.
Long-term sustained demand is also forecasted.Powerful magnets are required for AI server cooling fans and precision equipment, causing a sharp rise in demand for materials such as neodymium. The spread of humanoid and industrial robots is also likely to expand demand for high-performance motors.
★Category-specific stocks to watch
Currently, in the market①Resource Development and Plant ②Trading Companies and Supply Chain ③Smelting and Processing ④Recycling ⑤Alternative TechnologiesInvestor interest in related fields is growing.Highest year-to-date increaseis attributed to the world's top manufacturer of 'zirconium' compounds, a type of rare earth element, $Daiichi Kigenso Kagaku-Kogyo (4082.JP)$In addition to this company, major plant construction firms involved in the Minami Torishima project, $Toyo Engineering (6330.JP)$ishave risen more than twofold since the beginning of the year.as of the afternoon session on January 14.
Year-to-Date Gainers Ranking for Related Stocks(As of January 14, Afternoon Session 1:40 PM)
① $Daiichi Kigenso Kagaku-Kogyo (4082.JP)$
② $Toyo Engineering (6330.JP)$
③ $Asaka Riken (5724.JP)$
④ $Toho Zinc (5707.JP)$
⑤ $ENVIPRO HOLDINGS (5698.JP)$
⑥ $Japan Petroleum Exploration (1662.JP)$
⑦ $Okamoto Glass (7746.JP)$
⑧ $Daido Steel (5471.JP)$
⑨ $Pacific Metals (5541.JP)$
⑩ $Modec (6269.JP)$
① $Daiichi Kigenso Kagaku-Kogyo (4082.JP)$
② $Toyo Engineering (6330.JP)$
③ $Asaka Riken (5724.JP)$
④ $Toho Zinc (5707.JP)$
⑤ $ENVIPRO HOLDINGS (5698.JP)$
⑥ $Japan Petroleum Exploration (1662.JP)$
⑦ $Okamoto Glass (7746.JP)$
⑧ $Daido Steel (5471.JP)$
⑨ $Pacific Metals (5541.JP)$
⑩ $Modec (6269.JP)$
In terms of trading value, JX Advanced Metals, Mitsui Ocean Development, Toyo Engineering, Mitsui Metals, and Hitachi are among the most liquid. Companies with high dividend yields include Pacific Metals, Meiwakai, Toa Construction, and阪和興業. Recent losses were reported by Pacific Metals, Toyo Engineering, Okamoto Glass, and Toho Zinc.
↓Notable stocks by category
◎Resource Development and Plant (Directly Related to the Minami Torishima Project, etc.)
▼ $Modec (6269.JP)$
A top runner in floating oil and gas production facilities. In collaboration with the Japan Agency for Marine-Earth Science and Technology (JAMSTEC), it plays a central role in the development and demonstration of deep-sea mining systems.
A top runner in floating oil and gas production facilities. In collaboration with the Japan Agency for Marine-Earth Science and Technology (JAMSTEC), it plays a central role in the development and demonstration of deep-sea mining systems.
▼ $Toyo Engineering (6330.JP)$
Responsible for designing and manufacturing the 'Subsea Production System,' which pumps up rare earth-rich seabed mud in slurry form (muddy water). They possess technology that directly contributes to the success of test drilling.
Responsible for designing and manufacturing the 'Subsea Production System,' which pumps up rare earth-rich seabed mud in slurry form (muddy water). They possess technology that directly contributes to the success of test drilling.
▼ $Japan Petroleum Exploration (1662.JP)$
Leveraging years of accumulated expertise in 'oil and natural gas drilling and production technology,' they are involved as professionals in 'engineering' and 'operations' for resource recovery from deep seas in the Minami-Torishima offshore project.
Leveraging years of accumulated expertise in 'oil and natural gas drilling and production technology,' they are involved as professionals in 'engineering' and 'operations' for resource recovery from deep seas in the Minami-Torishima offshore project.
▼ $Toa Corporation (Construction) (1885.JP)$
A major player in marine civil engineering. Rare earth mud off Minami-Torishimato efficiently recover and sortIn infrastructure technology and plant development, they play a central role in the national project. They have established a technology that uses a separation device called a 'hydrocyclone,' which utilizes centrifugal force to efficiently concentrate specific particles (such as fish bone fossils) rich in rare earth elements.
A major player in marine civil engineering. Rare earth mud off Minami-Torishimato efficiently recover and sortIn infrastructure technology and plant development, they play a central role in the national project. They have established a technology that uses a separation device called a 'hydrocyclone,' which utilizes centrifugal force to efficiently concentrate specific particles (such as fish bone fossils) rich in rare earth elements.
▼ $Okamoto Glass (7746.JP)$
On January 9, it was announced that the unmanned deep-sea exploration vehicle 'Edokko No. 1' is scheduled to be used as a monitoring system for marine environmental impact assessments during the world's first rare earth mud sampling test, which will take place off the coast of Minami Torishima from January to February 2026.
On January 9, it was announced that the unmanned deep-sea exploration vehicle 'Edokko No. 1' is scheduled to be used as a monitoring system for marine environmental impact assessments during the world's first rare earth mud sampling test, which will take place off the coast of Minami Torishima from January to February 2026.
▼ $Furukawa (5715.JP)$
The technologies cultivated through mine developments such as the Ashio Copper Mine are drawing attention. To efficiently suction rare earth mud located in deep-sea areas like off Minami-Torishima,mining heads and slurry transport systemshave been developed.
The technologies cultivated through mine developments such as the Ashio Copper Mine are drawing attention. To efficiently suction rare earth mud located in deep-sea areas like off Minami-Torishima,mining heads and slurry transport systemshave been developed.
▼ $Pacific Metals (5541.JP)$
Japan’s largest producer of ferro-nickel (a raw material for stainless steel). Utilizing their long-cultivated smelting technology, they are advancing into next-generation operations extracting rare metals and rare earths from 'seafloor resources (polymetallic nodules).'
Japan’s largest producer of ferro-nickel (a raw material for stainless steel). Utilizing their long-cultivated smelting technology, they are advancing into next-generation operations extracting rare metals and rare earths from 'seafloor resources (polymetallic nodules).'
▼ $IDEA Consultants (9768.JP)$
A leading construction consultant and environmental survey company with roots in the former Shin-Nippon Meteorological & Oceanographical Consulting. In the Minami-Torishima project, they are responsible for marine resource surveys and environmental assessments.
A leading construction consultant and environmental survey company with roots in the former Shin-Nippon Meteorological & Oceanographical Consulting. In the Minami-Torishima project, they are responsible for marine resource surveys and environmental assessments.
▼ $Nittetsu Mining (1515.JP)$
Leveraging expertise in mining development, involved in the Minamitori Island Project, working on processes to efficiently separate components rich in rare earth elements from mud retrieved from the seabed, as well as studying resource concentration and production systems.
Leveraging expertise in mining development, involved in the Minamitori Island Project, working on processes to efficiently separate components rich in rare earth elements from mud retrieved from the seabed, as well as studying resource concentration and production systems.
◎Trading Companies and Supply Chain
▼ $Mitsui (8031.JP)$
Capitalizing on strengths in the resources and energy sector, participating in the Minamitori Island Project.
Capitalizing on strengths in the resources and energy sector, participating in the Minamitori Island Project.
▼ $Sojitz (2768.JP)$
Having long established procurement routes outside of China, since the 2011 'Rare Earth Shock,' JOGMEC (Japan Organization for Metals and Energy Security) has made substantial investments and loans to Lynas Corporation in Australia. The rare earth elements produced by Lynas CorporationExclusive sales rights in the Japanese marketfor rare earths produced by Lynas Corporation, ensuring stable supply to Japan’s manufacturing industry (e.g., magnet manufacturers).
Having long established procurement routes outside of China, since the 2011 'Rare Earth Shock,' JOGMEC (Japan Organization for Metals and Energy Security) has made substantial investments and loans to Lynas Corporation in Australia. The rare earth elements produced by Lynas CorporationExclusive sales rights in the Japanese marketfor rare earths produced by Lynas Corporation, ensuring stable supply to Japan’s manufacturing industry (e.g., magnet manufacturers).
▼ $Sumitomo (8053.JP)$
The largest rare earth producer in the United States $MP Materials (MP.US)$Company and Japan-bound oxidesExclusive sales agency agreement, securing a stable route for 'U.S.-produced rare earths' bypassing China.
The largest rare earth producer in the United States $MP Materials (MP.US)$Company and Japan-bound oxidesExclusive sales agency agreement, securing a stable route for 'U.S.-produced rare earths' bypassing China.
▼ $Hanwa (8078.JP)$
Accelerating investigations into rare earth separation and refining operations in Africa (Angola) starting in the second half of 2025, urgently building a new supply chain independent of China.
Accelerating investigations into rare earth separation and refining operations in Africa (Angola) starting in the second half of 2025, urgently building a new supply chain independent of China.
▼ $Meiwa (8103.JP)$
As a trading company in the Mitsubishi Group, it focuses particularly on the stable supply of rare earths leveraging its 'China network' and on battery recycling for the next generation. In recent years, considering geopolitical risks, the company has been promoting a multi-layered supply chain including 'non-China sources' such as Southeast Asia, not just from China.
As a trading company in the Mitsubishi Group, it focuses particularly on the stable supply of rare earths leveraging its 'China network' and on battery recycling for the next generation. In recent years, considering geopolitical risks, the company has been promoting a multi-layered supply chain including 'non-China sources' such as Southeast Asia, not just from China.
◎Refining and Processing
▼ $Mitsui Kinzoku (5706.JP)$
Centered around the group company 'Mitsui Metals Rare Materials (formerly Japan Yttrium),' the company manufactures high-purity oxides and compounds such as yttrium and lanthanum, supplying them for optical lenses, ceramics, and electronic components. It holds a world-class share in 'cerium oxide,' an abrasive used to polish glass substrates for LCD panels and hard disks. Following the rare earth crisis in the 2010s (China’s export restrictions), the company established and commercialized a technology to recover and reuse cerium oxide from used abrasives.
Centered around the group company 'Mitsui Metals Rare Materials (formerly Japan Yttrium),' the company manufactures high-purity oxides and compounds such as yttrium and lanthanum, supplying them for optical lenses, ceramics, and electronic components. It holds a world-class share in 'cerium oxide,' an abrasive used to polish glass substrates for LCD panels and hard disks. Following the rare earth crisis in the 2010s (China’s export restrictions), the company established and commercialized a technology to recover and reuse cerium oxide from used abrasives.
▼ $Shin-Etsu Chemical (4063.JP)$
The company holds a high global market share in rare earth magnets and is among the top in separation and refining technologies worldwide. Amid efforts to reduce reliance on China for raw materials, its ability to complete the entire process domestically—from refining to magnet manufacturing—is being reevaluated.
The company holds a high global market share in rare earth magnets and is among the top in separation and refining technologies worldwide. Amid efforts to reduce reliance on China for raw materials, its ability to complete the entire process domestically—from refining to magnet manufacturing—is being reevaluated.
▼ $Alconix (3036.JP)$
The company boasts one of the largest shares in rare metal and rare earth trading in Japan. It operates a unique business model that integrates trading and manufacturing functions. Rather than merely acting as an intermediary, the company has strengthened its system for processing and recycling rare earths within its own group.
The company boasts one of the largest shares in rare metal and rare earth trading in Japan. It operates a unique business model that integrates trading and manufacturing functions. Rather than merely acting as an intermediary, the company has strengthened its system for processing and recycling rare earths within its own group.
▼ $Daiichi Kigenso Kagaku-Kogyo (4082.JP)$
The company is the world’s leading manufacturer of zirconium compounds, a type of rare earth used in automotive exhaust gas purification catalysts. It develops products expected to maximize the chemical properties of rare earths for next-generation energy applications like hydrogen-related technologies and solid electrolytes.
The company is the world’s leading manufacturer of zirconium compounds, a type of rare earth used in automotive exhaust gas purification catalysts. It develops products expected to maximize the chemical properties of rare earths for next-generation energy applications like hydrogen-related technologies and solid electrolytes.
▼ $Sumitomo Metal Mining (5713.JP)$
The company has world-class expertise in 'solvent extraction technology (such as the MSL method)' to extract specific metals from ores or mixtures with many impurities. It has successfully commercialized a technology to recover not only cobalt and nickel but also rare earths (e.g., scandium) and lithium from used lithium-ion batteries, turning them back into battery materials.
The company has world-class expertise in 'solvent extraction technology (such as the MSL method)' to extract specific metals from ores or mixtures with many impurities. It has successfully commercialized a technology to recover not only cobalt and nickel but also rare earths (e.g., scandium) and lithium from used lithium-ion batteries, turning them back into battery materials.
▼ $JX Advanced Metals (5016.JP)$
Not only extracting metals from ores but also to a level where they can be used as "electronic materials."Ultra-high purity enhancementThe company excels in technology to purify metals to an ultra-high purity level usable as 'electronic materials.' Additionally, it holds a world-class share in materials used for thin-film formation in semiconductors and displays.
Not only extracting metals from ores but also to a level where they can be used as "electronic materials."Ultra-high purity enhancementThe company excels in technology to purify metals to an ultra-high purity level usable as 'electronic materials.' Additionally, it holds a world-class share in materials used for thin-film formation in semiconductors and displays.
◎Recycling (Urban Mining, etc.)
▼ $DOWA Holdings (5714.JP)$
A world leader in the reclamation of 'urban mines.' The company possesses advanced technology to efficiently recover rare earth elements from used home appliances and magnets, and is expected to become a key domestic supplier.
A world leader in the reclamation of 'urban mines.' The company possesses advanced technology to efficiently recover rare earth elements from used home appliances and magnets, and is expected to become a key domestic supplier.
▼ $Asaka Riken (5724.JP)$
The company's strength lies in its advanced separation and purification technology using the 'solvent extraction method.' Rare earth elements often exist mixed with several other elements that have similar properties, making separation extremely challenging. However, the company excels at extracting specific rare earths like neodymium and dysprosium at high purity levels using this technique.
The company's strength lies in its advanced separation and purification technology using the 'solvent extraction method.' Rare earth elements often exist mixed with several other elements that have similar properties, making separation extremely challenging. However, the company excels at extracting specific rare earths like neodymium and dysprosium at high purity levels using this technique.
▼ $Renet Japan Group (3556.JP)$
A pioneer in 'small appliance recycling,' the company has partnerships with over 600 municipalities nationwide and collects used computers and smartphones via courier services. These devices often contain rare earth elements, such as those found in neodymium magnets in hard disk drives (HDDs). A hub for resource accumulation.
A pioneer in 'small appliance recycling,' the company has partnerships with over 600 municipalities nationwide and collects used computers and smartphones via courier services. These devices often contain rare earth elements, such as those found in neodymium magnets in hard disk drives (HDDs). A hub for resource accumulation.
▼ $Are Holdings (5857.JP)$
The company has processes to recover rare metals and rare earth elements (such as cerium and yttrium) from scrap produced during electronic component manufacturing and from used precision equipment, which are then reintroduced into the market as raw materials. It boasts an extensive recovery network and strong capabilities in handling various types of waste.
The company has processes to recover rare metals and rare earth elements (such as cerium and yttrium) from scrap produced during electronic component manufacturing and from used precision equipment, which are then reintroduced into the market as raw materials. It boasts an extensive recovery network and strong capabilities in handling various types of waste.
▼ $Toho Zinc (5707.JP)$
Separation and purification of rare metals, including rare earth elementsand through environmental business,the company considers recycling a pillar of its growth strategy.
Separation and purification of rare metals, including rare earth elementsand through environmental business,the company considers recycling a pillar of its growth strategy.
▼ $Mitsubishi Materials (5711.JP)$
A top-tier non-ferrous metal company. In addition to its recycling operations, it has extensive expertise in geothermal and resource development, and holds advanced separation technology for rare earth elements.
A top-tier non-ferrous metal company. In addition to its recycling operations, it has extensive expertise in geothermal and resource development, and holds advanced separation technology for rare earth elements.
▼ $Matsuda Sangyo (7456.JP)$
Specialists in collecting and processing scrap generated during semiconductor and electronic component manufacturing, as well as used electronic devices. The company uses advanced technology to recover rare metals and rare earth elements (such as cerium and lanthanum).
Specialists in collecting and processing scrap generated during semiconductor and electronic component manufacturing, as well as used electronic devices. The company uses advanced technology to recover rare metals and rare earth elements (such as cerium and lanthanum).
▼ $ENVIPRO HOLDINGS (5698.JP)$
Handles a wide range of activities from metal scrap collection to processing. Focuses particularly on resource recovery from motors and batteries generated during the dismantling process of hybrid and electric vehicles.
Handles a wide range of activities from metal scrap collection to processing. Focuses particularly on resource recovery from motors and batteries generated during the dismantling process of hybrid and electric vehicles.
◎Alternative Technology
▼ $Hitachi (6501.JP)$
A leader in developing alternative motors for EVs and home appliances that either 'do not use rare earth elements at all' or require 'an extremely small amount.'
A leader in developing alternative motors for EVs and home appliances that either 'do not use rare earth elements at all' or require 'an extremely small amount.'
▼ $Daido Steel (5471.JP)$
The first company in the world to put into practical use 'neodymium magnets that do not use heavy rare earths (such as dysprosium) at all.' To maintain magnetism at high temperatures, instead of heavy rare earths (dysprosium or terbium), Daido Steel uses its unique 'hot working method (MQ3 magnet)' to achieve high heat resistance. In collaboration with Honda Motor, they have successfully implemented a hybrid vehicle motor that uses magnets without any heavy rare earths.
The first company in the world to put into practical use 'neodymium magnets that do not use heavy rare earths (such as dysprosium) at all.' To maintain magnetism at high temperatures, instead of heavy rare earths (dysprosium or terbium), Daido Steel uses its unique 'hot working method (MQ3 magnet)' to achieve high heat resistance. In collaboration with Honda Motor, they have successfully implemented a hybrid vehicle motor that uses magnets without any heavy rare earths.
★Key Points for Investment Decisions
◆Minami-Torishima Related: The stock may move significantly based on trial drilling results (whether slurry lifting was successful, whether the concentration meets expectations) starting January 2026.
◆Geopolitical Related: Keep an eye on the extent and duration of China’s export ban measures.
―moomoo News Kei
Source: Each company's IR materials, moomoo
※The purpose of this content is solely to provide information and does not constitute a recommendation for any specific stock or investment product, nor does it serve as an invitation to invest. Additionally, the information provided reflects personal opinions only, and investments inherently carry risks, including potential loss of principal. For details regarding risks and fees, please refer to our company’s official website.
※The purpose of this content is solely to provide information and does not constitute a recommendation for any specific stock or investment product, nor does it serve as an invitation to invest. Additionally, the information provided reflects personal opinions only, and investments inherently carry risks, including potential loss of principal. For details regarding risks and fees, please refer to our company’s official website.
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Kevin 裏垢 : It’s a bit concerning that the US is proposing rare earth export restrictions while helping with the weak yen
タケ555 : Toyo Engineer's earnings contribution from rare earth seems to be the smallest![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Human imagination can sometimes lead to incredible things![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")