Saudi Arabia is actively pursuing joint investments with Chinese mining companies, focusing on the electric vehicle (EV) industry. Minister of Mineral Resources, Bandar Alkhorayef, highlighted the kingdom’s ambition to become a global leader in EV production, targeting an annual output of 500,000 units by 2030.
The kingdom is keen on collaborations for processing and producing lithium, a critical component in EV batteries. This was discussed in a meeting with General Lithium Corporation, a notable Chinese lithium products manufacturer. The talks centered on investment opportunities and the exchange of expertise in lithium production and processing.
Saudi Arabia’s first EV brand, Ceer, was licensed last year, and Lucid has established the first EV manufacturing facility in the country. Ceer, a joint venture with Foxconn and the Public Investment Fund, has committed $1.3 billion to build an EV complex in King Abdullah Economic City, with production expected to commence by 2025.
Alkhorayef’s recent visit to Chile, the second-largest lithium producer globally, underscores the kingdom’s strategic efforts to enhance cooperation in lithium production. Lithium is predominantly extracted through mining metal-bearing rocks and distillation from brine, processes that supplied the global demand in 2023.
Additionally, Saudi Arabia is exploring investments in copper processing and refining. Alkhorayef met with the chairman of Jiangxi Copper Company, a significant player in the global copper industry, although specific details of the discussions were not disclosed.
The Middle East’s major copper markets include the UAE, Saudi Arabia, Turkey, and Iran, collectively accounting for about 5% of global consumption. Saudi Arabia stands as the largest producer within the GCC, with significant copper production from mines at Jabal Sayid and Al Masane.
Despite its regional production, Saudi Arabia’s output is minor compared to Latin America, where Chile and Peru lead globally. The Democratic Republic of Congo, China, and the US are also among the top copper producers worldwide.
