Saudi Arabia and US to sign mining deal

Staff Writer | May 6, 2025 | 8:41 am Battery Metals Markets Asia United States USA Copper Gold Lithium Nickel Zinc

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Saudi Arabian Crown Prince Mohammed bin Salman. (Image: Wikimedia Commons)

Saudi Arabia’s cabinet said Tuesday that it is set to discuss and sign a mining cooperation agreement with the United States.

According to the country’s state news agency, the Saudi cabinet has the Minister of Industry and Mineral Resources—or an appointed deputy—to engage with US officials on a draft memorandum of cooperation.

The deal, which will focus on collaboration in mining and mineral resources, is expected to be signed with the US Department of Energy.

This move comes as Saudi Arabia accelerates its drive to become a global hub for battery and electric vehicle manufacturing. The kingdom is investing heavily in mining and industrial development as part of its broader strategy to diversify the economy away from oil dependence under Vision 2030.

Minister of Industry and Mineral Resources Bandar bin Ibrahim Alkhorayef has outlined plans to import raw materials and manufacture batteries using a mix of local and imported metals.

In parallel, Saudi Arabia is seeking to expand its footprint in international mining markets. In January, Saudi officials and Chile’s state-owned miner Codelco began early-stage discussions on potential joint investments in the copper sector. Saudi Arabia is also exploring lithium imports from Chile for domestic processing.

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The country has also made strategic investments abroad through Manara Minerals Investment Co.—a joint venture between the Public Investment Fund (PIF) and Saudi Arabian Mining Company (Ma’aden).

In 2023, Manara acquired a 10% stake in Vale Base Metals, the $26 billion copper and nickel spinoff from Vale.

Saudi Arabia currently imports the bulk of its copper to meet annual demand of 365,000 tonnes—a figure projected to more than double by 2035. Domestically, the country has identified vast mineral wealth, with exploration over the past two decades revealing deposits of gold, silver, copper, tin, tungsten, nickel, zinc, phosphates, bauxite, and more.

The kingdom is also exploring the mineral-rich seabed of the Red Sea, with plans to process extracted resources at the Yanbu industrial complex. According to the Ministry of Petroleum and Mineral Resources, Saudi Arabia has over 1,270 sources of precious stones and 1,170 sources of other minerals, issuing a growing number of mining and exploration concessions.