The Kingdom of Saudi Arabia and Japan are anticipated to concur on a co-investment strategy for the development of rare earth resources during Japanese Prime Minister Fumio Kishida’s forthcoming Middle East visit, as per a Nikkei report.
Prime Minister Kishida’s itinerary, spanning from July 16th to 18th, includes stops in Saudi Arabia and the United Arab Emirates, two notable oil-producing nations, as well as Qatar, a prominent supplier of liquefied natural gas. These countries constitute the primary energy suppliers to Japan, which lacks substantial domestic resources.
Rare earth resources hold critical significance for the decarbonisation agenda and production of electric vehicles, as Japan sets its sights on a carbon-neutral status by 2050. Concurrently, Saudi Arabia is ardently pursuing diversification efforts to reduce its oil-dependent economy.
A Nikkei report released on Saturday indicates that a cooperation agreement on rare earth resources is likely to be formalized on Sunday, involving Prime Minister Kishida and Saudi Crown Prince Mohammed bin Salman. This collaboration aims to jointly pioneer development projects in other nations.
Japan is also slated to facilitate the acceleration of resource development currently under exploration in Saudi Arabia, particularly involving copper, iron, and zinc, added Nikkei.
A high-ranking official from Japan’s foreign ministry announced earlier this week that Prime Minister Kishida aims to engage in energy market discussions during his impending Gulf visit while also offering Japanese technologies to facilitate the transition towards net zero emissions.
