Saudi Arabia has announced a partnership with the UK government to develop a critical minerals supply chains.
The move is part of a bid by both countries to safeguard the transition to more environmentally friendly energy production.
The deal – struck between Bandar Alkhorayef, Saudi Arabia’s minister of industry and mineral resources, and Kemi Badenoch, UK secretary of state for business and trade – will develop supply chain resilience for minerals including copper, lithium, cobalt and rare earth elements.
All of these materials are all vital for developing electric vehicles and solar panels.
The deal aims to open new opportunities for UK mining firms to do business in Saudi Arabia. The partnership will focus on sharing critical minerals strategies, establishing multilateral forums that support the flow of essential minerals; working with the private sector to identify new critical mineral supply chains and facilitating skills development.
Commenting on the deal, Alkhorayef said: “Lithium supply will need to increase by approximately 700%, nickel production by around 100%, and copper production by roughly 50% [in] 2020-30 compared to 2010-2020 to meet climate change goals.”
He added that the declaration of intent would allow the two countries to diversify supply chains for critical minerals for several mineral-intensive industries.
Badenoch added: “Critical minerals are essential to our everyday life – from electric vehicles and medical devices to wind turbines and solar panels.”
At the same time as signing the minerals deal, Badenoch met with Khalid al Falih, the Saudi minister of investment; Dr Majid bin Abdullah Al-Qasabi, minister of commerce, and Jasem Mohamed Albudaiwi, the GCC secretary-general.
This latest partnership comes after the UK government signed an agreement in January 2023 promising to deepen its collaboration with Saudi Arabia on diversifying sources of critical minerals.
The deal is additionally thought to be part of a plan by Badenoch to advance a comprehensive UK-GCC free trade agreement.
The GCC currently represents the UK’s seventh largest export market, while it is estimated a FTA could boost GCC exports to the UK by more than £2bn ($2.47bn).
Saudi Arabia has one of the greatest untapped sources of critical minerals in the global market, worth approximately $1.3trn.
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