Saudi Arabia open to joint mining ventures with China

REUTERS/Ahmed Yosri

Saudi Arabia is open to joint investments with Chinese mining companies, mineral resources minister Bandar Alkhorayef has said.

The kingdom is seeking collaborations in processing and producing lithium used in electric vehicle (EV) batteries, as well as processing and refining copper, the state-run Saudi Press Agency reported.

During a meeting with senior executives of General Lithium Corporation, a Chinese lithium products manufacturer, Alkhorayef emphasised the kingdom’s plans to become a global hub for EV production, aiming to produce 500,000 units annually by 2030.

The meeting also discussed the investment opportunities in the sector and the exchange of knowledge and innovation in the mining sector, especially in lithium production and processing.

Last year, Riyadh issued a license for the first Saudi EV brand, Ceer and Lucid opened the first factory in the kingdom to manufacture EVs.

Ceer, a joint venture between Taiwanese technology group Foxconn and the Public Investment Fund, has signed a $1.3 billion contract to establish an EV complex in King Abdullah Economic City. Production is slated to start by 2025.

Last month, Alkhorayef visited Chile, the world’s second-largest lithium producer, to build cooperation in lithium production.

Raw lithium is used primarily in battery manufacture and is extracted via two processes: mining of metal-bearing rocks – which accounted for about 57 percent of global supply in 2023 – and distillation from brine, which accounted for the rest. 

On investments in copper processing and refining, Alkhorayef met with the chairman of Jiangxi Copper Company, a major player in the global copper industry. However, no details were shared on their discussions.

The Middle East has four major copper markets: the UAE, Saudi Arabia, Turkey and Iran. They account for around 5 percent of global consumption, or 1,200 to 1,250 kilotonnes per year. The UAE accounted for 405 kilotonnes in 2023. 

In the GCC, Saudi Arabia is the largest producer, with mines at Jabal Sayid and Al Masane producing around 64 kilotonnes and 5.9 kilotonnes, respectively, in 2023.

In production terms, the region is a relative minnow. Latin America dominates output: Chile is the world’s largest producer and Peru the second. The Democratic Republic of Congo, China and the US complete the global top five.