Japanese Prime Minister Fumio Kishida and Saudi Arabia's Crown Prince Mohammed bin Salman have agreed on joint investments to develop rare earth resources, Nikkei reported. For Japan, this is part of an effort to reduce its dependence on China for key minerals, Nikkei reported.
According to Nikkei, Japan's Ministry of Economy, Trade and Industry, the Japan Organization for Metals and Energy Security (JOGMEC) and Saudi Arabia's Ministry of Industry and Mineral Resources will sign a memorandum of cooperation on July 16.
Prime Minister Fumio Kishida is scheduled to visit Saudi Arabia, the United Arab Emirates and Qatar - Japan's three main energy suppliers - from July 16-18. Photo: The Japan News
Under the agreement, Japan and Saudi Arabia will explore resource development projects in third countries for joint investment. This is especially important because rare earths are key elements used to make electric car batteries, semiconductors, mobile phones and wind turbines.
Saudi Arabia is seeking new rare earth deposits at home as part of a strategy to diversify its oil-dependent economy. JOGMEC will contribute technical expertise to support Riyadh in conducting preliminary surveys. Japan will also help accelerate the development of already-exploited resources in Saudi Arabia, such as copper, iron and zinc.
Both Japan and Saudi Arabia are keen to diversify their rare earth supply chains to avoid becoming too dependent on any particular supplier.
Most of the world's rare earth metals (used in electric vehicles and other products) are now produced in China. Photo: Nikkei/Reuters
In particular, Japan relies on China for nearly 80% of its lithium hydroxide supplies and more than 60% of its cobalt processing. Japan was forced to seek alternative suppliers after China restricted rare earth exports to the country following a dispute over the sovereignty of the Senkaku/Diaoyu Islands.
Mr. Kishida's trip to the Middle East will continue until July 18. Over the next three days, he will meet with leaders of the United Arab Emirates and Qatar to discuss energy cooperation and other issues .
Nguyen Tuyet (According to Nikkei, Asia News, Reuters)
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