Imagine a world where Saudi Arabia stands at the forefront of the electric vehicle revolution, powered by its strategic investments in lithium production. This vision is becoming a reality as the Kingdom’s Manara Minerals Investment Co., supported by Saudi Arabia’s sovereign wealth fund, is actively seeking investment opportunities in Chile, the world’s leading producer of lithium.
During an official visit to Chile, Saudi Arabia’s Minister of Industry and Mineral Resources, Bandar Alkhorayef, revealed that the Kingdom is diligently evaluating various investment options in this critical sector. The allure of Chile lies in its dominance in producing the essential battery metal, a key component for electric vehicle batteries.
Saudi Arabia’s Vision for a Sustainable Future
Saudi Arabia is on a mission to secure a stable supply of lithium and other vital minerals, positioning itself as a hub for battery and electric vehicle manufacturing. Manara Minerals, established in 2023 through a collaboration between the Public Investment Fund and Saudi Arabian Mining Co., plays a pivotal role in the Kingdom’s strategy to diversify its economy and harness mineral resources.
Minister Alkhorayef expressed optimism about potential developments with Manara’s involvement in Chile, citing the logical synergy between the two nations. He also acknowledged the strong commitment from the Chilean government to facilitate these investments, underscoring the importance of a reliable lithium supply for Saudi Arabia’s domestic battery production.
“We have a leadership that’s very ambitious. We are serious to source it now … as soon as possible,” Alkhorayef stated, highlighting the urgency and determination driving the Kingdom’s efforts.
Forging International Partnerships
Alkhorayef’s visit included discussions with Aurora Williams, his Chilean counterpart, focusing on the minerals supply chain, water issues, and lithium. A proposal to create a joint group between the two governments to explore mining industry collaborations was also put forward, indicating a promising future for bilateral relations.
The trade relationship between Saudi Arabia and Chile is robust, with non-oil exports to Chile reaching SR700 million ($186.59 million) in 2023, while imports stood at SR500 million. This economic interaction is part of Saudi Arabia’s broader initiative to boost its mining sector, which holds an estimated $2.5 trillion in untapped mineral resources.
Global Networking and Knowledge Exchange
Before arriving in Chile, Minister Alkhorayef visited Vale’s Carajas mines in Brazil to gain insights into advanced mineral extraction technologies. He also engaged with Eduardo Bartolomeo, CEO of Vale Mining Co., to discuss potential investment opportunities for Brazilian companies in Saudi Arabia, highlighting the Kingdom’s openness to international collaboration and investment.
Saudi Arabia is on the cusp of a transformative era in its mining and electric vehicle industries. With strategic partnerships and investments, the Kingdom is not only diversifying its economy but also paving the way for a sustainable, innovation-driven future. For investors and companies worldwide, the opportunities in Saudi Arabia are abundant and promising.
