Rare Earth Exchanges

Saudi Arabia Accelerates Push Into Critical Minerals Mining and Processing, Billions to Spend

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Highlights

  • Saudi Arabia announces $100 billion investment initiative in critical minerals mining at the 2025 Future Minerals Forum
  • Kingdom doubles mineral resource valuation to $2.5 trillion
  • Focus on lithium, rare earth elements, copper, nickel, and gold
  • Energy Minister aims to begin lithium production by 2027
  • Positioning Saudi Arabia to compete in global energy transition minerals market

Can Saudi Arabia move from one energy source to another—from carbon-based oil to vitamin inputs feeding the high-tech future?  The Kingdom is positioning itself as a global leader in critical minerals mining and processing, announcing a $100 billion investment initiative at the 2025 Future Minerals Forum in Riyadh.

Of this, $20 billion is already in the final engineering phase or under construction. The kingdom has significantly increased its valuation of untapped mineral resources, doubling estimates from $1.3 trillion to $2.5 trillion in 2024, driven by the discovery of rare earth elements, lithium, and other critical minerals like copper, nickel, and gold.

Saudi Energy Minister Prince Abdulaziz bin Salman cautioned that the energy transition is inherently material-intensive, and the demand for these minerals could soon outpace their available supply.
Source: Arab News

According to Arab News (opens in a new tab), Energy Minister Abdulaziz bin Salman emphasized the urgency of accelerating mining projects, highlighting promising lithium concentrations in Aramco-operated areas and aiming to begin lithium production by 2027.

Collaborative efforts, including a joint venture between Aramco and state mining company Ma’aden (opens in a new tab), aim to bolster the kingdom’s role in energy transition minerals. Additionally, Saudi Arabia is advancing its position in mineral processing, seeking to diversify its economy and reduce its dependence on oil while competing with China’s dominance in the lithium market.

The Reality

While the kingdom’s ambitions are bold, the article avoids addressing challenges such as environmental concerns, geopolitical risks, and the long timelines required to develop mining operations. This is not to mention the know-how, intellectual property, and specialized knowledge necessary for processing and refining infrastructure.  It also assumes Saudi Arabia can rapidly scale up both extraction and processing capabilities to meet global demand despite existing competition and technological hurdles.

To achieve its goals, the kingdom will need sustained investment, robust partnerships, and strategies to navigate potential regulatory and market barriers.  Rare Earth Exchanges will carefully follow Ma’aden and Saudi Arabia’s moves in this sector.

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