Saudi Arabia dreams of becoming a new mining power. Its resources in copper, manganese, lithium, nickel and even rare earths aroused little interest in a state which derives 60% of its revenue from oil, until the kingdom became aware of this treasure buried beneath the desert. In January, at the Future Minerals Forum exhibition organized in Riyadh, it unveiled mammoth projects to establish itself in this sector.
The lords of black gold have understood this well: the 20the century was oil, the 21ste century will be metallic. Boosted by the green transition and the digitalization of the global economy, demand for minerals is soaring. In its latest report from May 2024, the International Energy Agency (IEA) calculated that, to achieve the goal of net zero CO emissions2 by 2050, the consumption of lithium must be multiplied by nine by 2040, that of graphite by four and that of cobalt, nickel and rare earths by two.
Saudi Arabia has calculated that its mineral resources are worth $2.5 trillion (€2.3 trillion), with only half of the territory explored. Above all, it wants to establish itself as an essential global platform thanks to its geographical location, halfway between the mines of Africa and the factories of China, and its good relations with Beijing and Washington. In recent months, it has multiplied memorandums of understanding with Egypt, Russia, Morocco and the Democratic Republic of Congo (DRC) to access their resources. The kingdom also invests throughout the world, through its specialized fund Manara Minerals, which for example acquired, in April, 10% of the critical metals branch of the Brazilian giant Vale for $2.5 billion.
Fierce competition
These new ambitions further strengthen the fierce competition between the great powers to secure their supplies of strategic minerals. According to IEA forecasts, the market, currently valued at $325 billion, is expected to double by 2040. But in reality these minerals weigh much more than hundreds or trillions of dollars. Countries depend on them for their security, as they are used in the production of sophisticated military equipment, and to develop their green industry. Without lithium, graphite or nickel, it is impossible to manufacture batteries and therefore produce electric vehicles. China guessed it before anyone else. It now refines 60% of all metals used in electric vehicle batteries.
You have 81.38% of this article left to read. The rest is reserved for subscribers.