Japan Saudi Arabia Rare Earths China Trade
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Japan Seeks Rare-Earth Collaboration with Saudi Arabia to Reduce China Dependence
Table of Contents
Updated December 2, 2025, 1:33 PM JST
Originally published December 2, 2025, 16:51:46 JST
TOKYO – Japanese Prime Minister Sanae Takaichi on Monday urged Saudi Arabia to partner with Japan in developing sources of rare-earth minerals, signaling a growing concern over Japan’s reliance on China for these strategically vital materials.The call for collaboration comes as geopolitical tensions and supply chain vulnerabilities increasingly focus attention on securing access to critical resources.
The Strategic Importance of Rare-Earth Minerals
Rare-earth elements – a set of 17 metallic elements – are crucial components in a wide range of modern technologies,including electric vehicles,smartphones,wind turbines,and defense systems. China currently dominates the global rare-earth supply chain, controlling an estimated 60-70% of global production [Statista, accessed dec 2, 2025]. This dominance has raised concerns among countries like Japan, the United States, and members of the European Union about potential supply disruptions and geopolitical leverage.
Saudi Arabia’s Emerging Role in Mineral Resources
saudi Arabia possesses notable untapped mineral resources, including rare-earth elements. The Kingdom is actively pursuing diversification away from oil dependence as part of its “Vision 2030” plan, and mineral development is a key component of this strategy. In early 2025, Saudi Arabia’s Ministry of Industry and Mineral Resources announced a $133 billion investment plan [Reuters, January 10, 2025] to develop its mining sector, attracting international partners and expertise. Recent geological surveys indicate significant deposits of rare-earth elements within the kingdom, particularly in the northwestern region.
Japan’s vulnerabilities and Diversification Efforts
Japan is particularly vulnerable to disruptions in the rare-earth supply chain due to its heavy reliance on these materials for its advanced manufacturing industries. The 2010 dispute between China and Japan over the Senkaku/Diaoyu Islands, which led to a temporary halt in rare-earth exports to Japan, served as a stark reminder of the risks associated with over-dependence on a single supplier. Since then, Japan has been actively pursuing strategies to diversify its supply sources, including:
- Investing in rare-earth mining projects in Australia, Canada, and the United States.
- Developing technologies for recycling rare-earth elements from electronic waste.
- Researching choice materials that can substitute for rare-earth elements in certain applications.
Potential Areas of Collaboration
The collaboration between Japan and Saudi Arabia could take several forms, including:
- Joint exploration and development of rare-earth mineral deposits in Saudi Arabia.
- Japanese investment in Saudi Arabian mining infrastructure and processing facilities.
- Technology transfer from Japan