Saudi Arabia intensifies critical minerals push with $160 billion investment in Vision 2030
Saudi Arabia is accelerating strategic plans to expand the country’s future energy interests, recently unveiling an increased focus on critical mineral opportunities.
The Saudi government revealed a number of new initiatives at its recent annual Future Minerals Forum (FMF) in Riyadh, including the investment of approximately $160 billion into a mineral development project.
Those moves expand on Saudi Arabia’s Vision 2030, which is targeting a major investment in the development of the nation’s untapped mineral resources and seeks to increase mining’s GDP contribution from $27b to $103b by 2030.
Lithium a major focus
The world-leading oil producer has made no secret that it is turning its focus to battery metals such as lithium as the globe transitions away from fossil fuels.
Saudi officials have discussed plans to significantly expand the country’s exploration for lithium, as well as for other critical minerals and rare earth elements including copper, gold, zinc, phosphate and nickel.
The Saudi Ministry of Industry and Mineral Resources estimated in early 2024 that the country contains approximately $4 trillion in yet-to-be-explored minerals.
Aramco JV
It was also revealed that state oil giant Aramco has signed a joint venture (JV) with Saudi state mining company Ma’aden to explore and produce energy transition minerals.
Aramco – the fourth-largest company in the world – and Ma’aden will concentrate on the development of Saudi Arabia’s vast lithium opportunity.
Commercial lithium production is expected to commence by 2027.
Meeting global demand
“We expect that this partnership will leverage the world’s leading upstream enterprise, with a view to meeting the kingdom’s and, potentially, the world’s projected lithium demand,” Aramco president of exploration and production Nasser al-Naimi said.
Saudi Arabia has successfully extracted lithium from brine samples at Aramco’s oil fields and plans to launch a commercial pilot program for direct extraction soon.
The FMF also highlighted a number of other initiatives including an agreement between the National Industrial Co. and China’s DHX Group related to the development of a tinplate production factory in eastern Saudi Arabia.
The facility will have an annual production capacity of up to 400,000 tonnes.