Japan, Saudi Arabia Agree to Boost Mineral Supply Chains

Tokyo, Dec. 25 (Jiji Press)--Japan and Saudi Arabia have agreed to strengthen supply chains for minerals essential for the production of green products such as electric vehicles, it was learned Monday.

Japan hopes to achieve decarbonization and boost economic security by securing stable supplies of key minerals through the development of mines and the acquisition of interests in Africa and Central and South America.

Japan's industry ministry and the Saudi Ministry of Industry and Mineral Resources signed a memorandum of understanding Sunday.

The government-backed Japan Organization for Metals and Energy Security, or JOGMEC, and Manara Minerals Investment Co., a Saudi company established to invest in mines around the world, also signed such a document.

The two governments plan to exchange information on mineral resources and cooperate in human resource development.

JOGMEC and Manara agreed to aim for the start of multiple joint investment projects within two years. 

They hope to use the two countries' governmental support to attract private-sector investments.

Supplies of key minerals such as lithium and cobalt are expected to tighten as decarbonization efforts advance. 

Such minerals are found in limited areas, and China hold huge shares in the market for intermediate processing such as smelting.

Tokyo hopes that working with Saudi Arabia, which aims for shift to an economy not dependent on fossil fuels, will lead to securing stable mineral supplies.

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