RIYADH: Saudi Arabia’s Manara Minerals Investment Co., backed by the Kingdom’s sovereign wealth fund, is exploring opportunities to invest in lithium production in Chile, according to a top minister.
While on an official visit to the South American country, Saudi Arabia’s Minister of Industry and Mineral Resources Bandar Alkhorayef told Reuters that the Kingdom is “analyzing different options” for investment in the world’s largest producer of lithium.
The minister also noted that Manara is interested in Chile due to its position as the world’s largest producer of battery metal.
Saudi Arabia is working to secure access to lithium and other minerals as it aims to become a hub for battery and electric vehicle manufacturing.
Established in 2023 by the Public Investment Fund and Saudi Arabian Mining Co., Manara Minerals is part of the Kingdom’s broader strategy to diversify its economy and utilize its mineral resources.
“I think we can see something happening with Manara on the Chilean assets here. It makes a lot of sense,” said Alkhorayef.
The minister noted seeing “great commitment” from the Chilean government to help secure investment.
He emphasized that securing a reliable supply of lithium is crucial for Saudi Arabia to produce batteries for electric vehicles domestically.
“We have a leadership that’s very ambitious. We are serious to source it now ... as soon as possible,” added Alkhorayef.
During his visit, Alkhorayef also met with his Chilean counterpart Aurora Williams to discuss the minerals supply chain, water issues, and lithium.
Reuters reported that the Saudi minister proposed creating a joint group between the two governments to explore collaboration in the mining industry.
The Kingdom’s trade relations with Chile are robust, with non-oil exports to the Latin American nation totaling SR700 million ($186.59 million) in 2023, while imports amounted to SR500 million.
Alkhorayef’s visit is part of Saudi Arabia’s broader efforts to elevate the mining sector as a key component of its economy, with an estimated $2.5 trillion in untapped mineral resources.
Prior to his visit to Chile, the minister toured Vale’s Carajas mines in Brazil to learn about advanced mineral extraction technologies, according to the Saudi Press Agency.
He also met with Eduardo Bartolomeo, CEO of Vale Mining Co., to discuss investment opportunities for Brazilian companies in Saudi Arabia and expansion plans for Brazilian investors in the Kingdom.
