Saudi Energy Minister Abdulaziz bin Salman speaks during the Future Investment Initiative (FII) annual conference in Riyadh, October 29, 2024.
Fayez Nureldine | Af | Getty Images
RIYADH, Saudi Arabia — Saudi Arabia is seeking to put itself on the global critical minerals map, announcing a series of deals, investment plans and discoveries at the annual Future Minerals Forum in the capital, Riyadh.
Saudi Deputy Minister of Mines Khalid al-Mudaifer on Wednesday announced a new mineral investment project worth $100 billion, of which $20 billion is already in the final engineering phase or under construction.
Although the deputy minister did not provide further details, Saudi officials discussed plans to significantly expand domestic exploration for lithium, as well as other key minerals and rare earth elements, including copper, gold, zinc, phosphates and nickel.
In early 2024, the kingdom's Ministry of Industry and Mineral Resources increased estimates of the value of the kingdom's untapped mineral resources $1.3 trillion to $2.5 trillionenhanced by the discovery of the above-mentioned elements and metals. At the Future Minerals Forum in January 2024, the Government of Saudi Arabia established an incentive program worth $182 million to search for minerals.
The Kingdom's state oil giant Aramco announced on Wednesday a joint venture with Saudi state mining company Ma'aden to explore and produce energy transition minerals.
Speaking on stage, Saudi Energy Minister Abdulaziz bin Salman told participants at a minerals forum that Aramco had identified “promising” lithium concentrations of more than 400 parts per million in areas where it operates.
“We said that… Aramco has nothing to do,” bin Salman told event participants. “Aramco can be a diversified company and its mandate has no limits.”
The minister highlighted Manara, Ma'aden's recently established venture with the kingdom's sovereign wealth fund, the Public Investment Fund (PIF). Manara was established to invest in mining assets around the world and develop more resilient global supply chains.
“We don't claim to have all the resources and skills, so we created Manara to make sure we have the resources we need,” bin Salman said. “We have to do this as fast and furious as possible.”
Saudi Aramco's Ras Tanura refinery and oil terminal
Ahmed Jadallah | Reuters
He added that lithium production in the kingdom could start as early as 2027 thanks to possible cooperation.
Lithium, a key component of batteries for devices and electric vehicles, is a highly sought-after commodity, particularly in the context of the energy transition and advanced technologies, and as Saudi Arabia works to diversify its oil-based economy.
The kingdom is also seeking to become a hub for processing these key minerals as it looks to build supply chains that are more resilient to global disruptions. About two-thirds of the lithium processing market is currently controlled by China.
Saudi Arabia in December announced successful lithium extraction from brine samples from Aramco oil fields. Collaboration is underway with Ma'aden, Aramco and local mining startup Lithium Infinity to launch a direct extraction commercial pilot program soon, al-Mudaifer said at the time.