Saudi Arabia’s Ambitious Push into Critical Minerals
A New Era of Diversification
Saudi Arabia is making a bold move to establish itself as a major player in the global critical minerals market. At the recent Future Minerals Forum in Riyadh, the kingdom announced a slew of deals, investment plans, and discoveries that are set to transform its mining industry.
A $100 Billion Investment Project
Saudi Vice Minister of Mining Affairs Khalid al-Mudaifer revealed a new mineral investment project valued at a staggering $100 billion, with $20 billion already in the final engineering phase or under construction. While details are scarce, officials have hinted at plans to significantly expand the country’s exploration for lithium, copper, gold, zinc, phosphate, and nickel.
Unexploited Mineral Resources Valued at $2.5 Trillion
In early 2024, the kingdom’s Ministry of Industry and Mineral Resources increased its estimate of the value of its unexploited mineral resources from $1.3 trillion to $2.5 trillion, driven by the discovery of critical minerals and rare earth elements.
Incentivizing Minerals Exploration
To accelerate growth, the Saudi government established a $182 million incentive program for minerals exploration at the Future Minerals Forum in January 2024.
Aramco’s Joint Venture with Ma’aden
Saudi state oil giant Aramco announced a joint venture with Saudi state mining company Ma’aden to explore and produce energy transition minerals. Energy Minister Abdulaziz bin Salman revealed that Aramco had identified promising lithium concentrations exceeding 400 parts per million in areas where it operates.
Manara: A Global Mining Venture
The minister highlighted Manara, a venture between Ma’aden and the kingdom’s sovereign wealth fund, the Public Investment Fund (PIF). Manara aims to invest in mining assets worldwide and develop more resilient global supply chains.
Lithium Production by 2027
With possible collaborations, lithium production in the kingdom could begin as soon as 2027. As a key element in batteries for devices and electric vehicles, lithium is a highly sought-after commodity, particularly for the energy transition and advanced technologies.
A Hub for Critical Minerals Processing
Saudi Arabia is pushing to become a hub for the processing of critical minerals, seeking to build supply chains that are more resilient to global disruptions. Currently, China controls roughly two-thirds of the lithium processing market.
A Commercial Pilot Program for Direct Extraction
A collaboration between Ma’aden, Aramco, and local extraction startup Lithium Infinity is underway to launch a commercial pilot program for direct extraction soon. This marks a significant step forward in the kingdom’s quest to diversify its economy away from oil.
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