'Japan And Saudi Arabia Seek Joint Rare-Earth Investments' - Nikkei Asia
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Japan and Saudi Arabia are expected to agree on joint investments to develop rare-earth resources, aiming to reduce reliance on countries like China for key minerals. The agreement will involve Japan's Ministry of Economy, Trade and Industry, the Japan Organization for Metals and Energy Security (JOGMEC), and Saudi Arabia's Ministry of Industry and Mineral Resources. They will explore resource development projects in third countries for joint investment, focusing on rare-earth metals used in electric vehicles (EVs).
July 14, 2023 | 5:08 pm
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POSITIVE IMPACT
The joint investment in rare-earth resources between Japan and Saudi Arabia could potentially benefit Japan, which is represented by the iShares MSCI Japan ETF (EWJ).
The joint investment in rare-earth resources could potentially reduce Japan's reliance on China for these key minerals, which could have positive implications for the country's economy and, by extension, the EWJ ETF.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The joint investment in rare-earth resources between Japan and Saudi Arabia could potentially impact the VanEck Vectors Rare Earth/Strategic Metals ETF (REMX), which invests in companies involved in producing, refining, and recycling of rare earth and strategic metals and minerals.
The joint investment in rare-earth resources could potentially increase the demand for rare earth and strategic metals, which could have positive implications for the companies that REMX invests in.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
The joint investment in rare-earth resources between Japan and Saudi Arabia is not directly related to the United States Oil Fund (USO), which tracks the price of West Texas Intermediate light, sweet crude oil.
The joint investment in rare-earth resources is not directly related to the oil industry, which is the main focus of the USO ETF.
CONFIDENCE 90
IMPORTANCE 10
RELEVANCE 10