Goal: Reducing dependence on a few supplier countries.
Japanese Prime Minister Sanae Takaichi has advocated closer collaboration between Japan and Saudi Arabia on rare earth elements. Citing supply risks from heavy reliance on a limited number of producers, Takaichi made her remarks at an investment forum in Tokyo, which was partly sponsored by the Saudi sovereign wealth fund, according to Nikkei Asia.
Saudi Arabia has been working to diversify its economy and reduce its dependence on oil exports. The kingdom places high hopes on previously untapped mineral resources, including lithium, gold, and rare earth elements, which it estimates are worth around $2.5 trillion. To extract and process these resources, Saudi Arabia is seeking partnerships with foreign experts, such as the recent collaboration with U.S.-based MP Materials. A joint venture is planned to establish a fully integrated rare earth supply chain.
Japan, in turn, is actively searching for new sources of raw materials worldwide, from South America to Africa and Australia, to broaden the supply base for its high-tech industries. A key player in these efforts is JOGMEC, Japan’s state-owned organization for metal and energy security, which provides financial support for exploration and mining projects both domestically and abroad. Japan has long been working on building resilient supply chains and is frequently cited internationally as a model in this area.
Photo: iStock/ArtEvent ET
