At the Future Minerals Forum in Riyadh, Saudi Arabia unveiled an ambitious $100 billion investment aimed at transforming the global mining industry. The kingdom is positioning itself as a key player in the supply of critical minerals essential for energy transition technologies, including lithium, copper, gold, and rare earth elements. This strategic push is part of Saudi Arabia’s broader plan to diversify its economy and reduce dependence on oil.
Khalid al-Mudaifer, Deputy Minister of Mining Affairs, revealed that $20 billion of the planned investment is already advancing through its final engineering phase or is under construction. While details on the full scope of the project remain limited, the focus is on boosting exploration for key minerals such as lithium, copper, zinc, and nickel.
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Earlier in 2024, the Ministry of Industry and Mineral Resources updated its estimate of the value of untapped mineral resources, increasing the figure from $1.3 trillion to $2.5 trillion. This upward revision is largely driven by recent discoveries of these critical resources. In conjunction with this, the Saudi government launched a $182 million incentive program to further encourage mineral exploration and development.
Strategic Partnerships And New Discoveries
Saudi oil giant Aramco has partnered with state-owned mining company Ma’aden to jointly explore and extract minerals essential for the energy transition. Aramco’s collaboration extends to lithium exploration, with the company identifying promising lithium concentrations in its operating regions.
Energy Minister Prince Abdulaziz bin Salman highlighted that Aramco’s involvement in mining, particularly lithium extraction, marks a departure from previous assumptions about the company’s focus. “Aramco can be a diversified company, and its mandate has no limits,” said bin Salman, underscoring the kingdom’s forward-thinking approach.
A key player in this strategy is Manara, a joint venture between Ma’aden and the Public Investment Fund (PIF), designed to invest in mining assets globally and strengthen sustainable supply chains. The venture aims to diversify Saudi Arabia’s mining operations and ensure access to the resources necessary for a successful energy transition.
Ambitious Timeline And Market Impact
The kingdom anticipates lithium production could commence as soon as 2027, with collaborations expected to accelerate the process. Lithium, a crucial component for electric vehicle batteries, is in high demand, and Saudi Arabia aims to become a central hub for processing critical minerals, competing with China, which currently dominates two-thirds of the lithium processing market.
In a breakthrough, Saudi Arabia recently confirmed the successful extraction of lithium from brine samples in Aramco’s oil fields. A joint venture with Ma’aden and local lithium extraction startup, Lithium Infinity, is now working on launching a commercial pilot program for direct extraction.
This bold move signals Saudi Arabia’s determination to play a pivotal role in the future of global mining, tapping into resources that will fuel both its economy and the world’s transition to cleaner energy technologies.
