In a significant move towards resource independence and diversified supply chains, Japanese Prime Minister Fumio Kishida and Saudi Arabian Crown Prince Mohammad bin Salman are entering a strategic partnership.
This partnership aims to develop rare-earth resources essential in various sectors, including technology and renewable energy, particularly for electric vehicle manufacturing.
China overwhelmingly dominates this sector, leading Japan to seek alternatives to lessen this dependence.
The countries have formalized their collaboration with a memorandum of cooperation involving major stakeholders from both nations.
This includes Japan’s Ministry of Economy, Trade and Industry, the state-backed Japan Organization for Metals and Energy Security (JOGMEC), and Saudi Arabia’s Ministry of Industry and Mineral Resources.
Their joint efforts will focus on investments in third countries, securing access to essential minerals, and facilitating Saudi Arabia’s pursuit of new rare-earth deposits.
JOGMEC will provide technical support to Riyadh for this purpose and will also work to speed up existing resource development projects.
This partnership underscores a broader, global trend where nations aim to diversify their supply chains and reduce reliance on single, dominant producers like China, thus ensuring greater security and sustainability in their resources.