NEW DELHI: Saudi Arabia and India agreed on Tuesday to strengthen cooperation in the critical minerals sector, as New Delhi seeks to accelerate its green energy transition. 

Critical minerals, such as lithium, copper and rare earth, are essential raw materials required for clean energy technologies, used in wind turbines, electric vehicles, battery manufacturing and to help develop artificial intelligence systems.  

India’s coal and mines minister G. Kishan Reddy and his Saudi counterpart, Bandar Al-Khorayef, met in the Indian capital and discussed “fostering resilient supply chains, investments in mineral value addition, and technological collaboration,” India’s Ministry of Mines said in a statement. 

“India and Saudi Arabia are deepening cooperation in the critical minerals sector,” the ministry said. 

“The dialogue aligns with India’s National Critical Minerals Mission, focusing on securing resources essential for clean energy and high-tech industries.” 

The Indian government launched just last week the National Critical Mineral Mission, a comprehensive plan aimed at securing the country’s national, energy and food security needs.  

Under the mission, India plans to secure overseas mining assets, while also expanding its domestic exploration of critical mineral blocks, increase research and development projects, and create 10,000 skilled professionals specializing in the sector. 

These efforts are also aimed at supporting India’s target of cutting its emissions to net zero by 2070. 

During their meeting on Tuesday, Reddy and Al-Khorayef “explored strengthening mineral supply chains, investment opportunities and knowledge-sharing in mineral exploration,” the Indian mines ministry said. 

Saudi Arabia, which estimates the value of its untapped mineral resources at $2.5 trillion, is aiming to become a global hub for critical minerals trade, with the sector being key to the Kingdom’s Vision 2030 diversification and transformation plan. 

In 2022, Riyadh started awarding mining exploration licenses to international investors. 

“Critical minerals, along with AI, and similar future commodities will be the new proverbial oil,” Kabir Taneja, deputy director at the Observer Research Foundation, told Arab News. 

While commodities are traditionally a game of individual state interests and policies rather than a product of multilateralism, “states like India (and) Saudi Arabia should join hands in pursuing these futures as part of a common narrative, that is of multipolarity,” he said. 

Cooperation in the critical minerals sector is likely to benefit both India and Saudi Arabia, said Muddassir Qamar, associate professor at the Center for West Asian Studies at Jawaharlal Nehru University.

“India’s plan for augmenting its manufacturing sector and competing with major manufacturing hubs in Asia and globally would require import of critical minerals, which Saudi Arabia has,” he told Arab News. 

“If this can evolve into more than just transactional relations, it’s a win-win for both countries.”