A dozen teams are racing to win Google's $20 million Lunar XPrize, which will be awarded to the first privately funded team that lands on the moon. The race is being seen as a chance to grab the lead in a market by teams in Japan, the US, Brazil, India and Germany.

The competitors are predicting mining platinum and rare earth elements, setting up habitats using water from lunar polar caps. They will eventually build a launchpad for a mission to Mars.

According to Peter Diamandis, the founder of the award, XPrize would be able to attract several times the amount in investment, lend authority to an idea and help define achievable goals. Winning also calls for a feasible business model that can keep the project alive after the prize money is spent.

Takeshi Hakamada, whose Tokyo-based Hakuto team is building a lunar rover said, "We are not in it for the prize alone. The race is there to speed innovation that leads to commercialization of the moon. For example, we might explore a lunar cave for possible habitat location. That data would really sell".

Hakuto design has already won a $500,000 milestone prize from Google for mobility. The vehicle is propelled by four wheels studded with paddles.

The lunar competition is inspired by the Orteig Prize, which in 1927 gave $25,000 to Charles Lindbergh for the first non-stop solo flight between New York and Paris.