Japanese Prime Minister Fumio Kishida and Saudi Arabian Crown Prince Mohammad bin Salman are expected to agree Sunday on joint investments to develop rare-earth resources, Nikkei has learned, as Tokyo seeks to reduce its reliance on countries like China for key minerals.

Kishida is visiting Saudi Arabia as part of a tour of the Middle East.

As part of the agreement, a memorandum of cooperation will be signed soon by 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.

Under the deal, Japan and Saudi Arabia will explore resource development projects in third countries for joint investment. They hope to secure rights to key minerals, such as rare-earth metals used in electric vehicles. Demand for EVs is only growing amid a global push toward decarbonization.

Saudi Arabia is searching for new rare-earth deposits at home as part of its national strategy. JOGMEC will contribute technical expertise to assist Riyadh in conducting preliminary surveys.

Japan will also help accelerate the development of resources already being mined in Saudi Arabia, such as copper, iron and zinc.

A handful of countries, including China, currently produce much of the world's rare earths, as well as elements used in EV batteries like lithium and cobalt. Japan and Saudi Arabia both aim to diversify supply chains for such metals to avoid depending too heavily on any specific supplier.

Japan in particular relies on China for nearly 80% of its lithium hydroxide supply, and over 60% of its cobalt processing. It was forced to seek alternative suppliers when China restricted rare-earth exports to Japan following a 2010 collision of Chinese and Japanese vessels near the Senkaku Islands, a Japanese-administered chain claimed by China as the Diaoyu.

Kishida will also be stopping at the United Arab Emirates and Qatar to meet with their leaders and affirm cooperation in energy and other fields.