Saudi Arabia’s strategic move into critical minerals

At the heart of the clean energy transition lies a powerful yet often unseen foundation: critical minerals such as lithium, cobalt, nickel, copper, graphite, and rare earth elements. 

These materials enable the batteries, wind turbines, and solar panels driving global decarbonization and fulfilling net zero commitments, as outlined in the International Energy Agency’s Global Critical Minerals Outlook 2025.

The IEA projects global demand for these resources to more than triple by 2035. Copper faces a potential shortfall without new projects, while lithium and cobalt demand has surged significantly and continues to rise. 

Clean energy technologies account for a substantial portion of this demand growth, underscoring their pivotal role in advancing solutions related to climate mitigation.

Processing capacity remains highly concentrated, with China refining about 90 percent of rare earths, producing 75 percent of graphite anode materials, and manufacturing nearly 80 percent of lithium-ion battery cells. This concentration risks supply chain shocks that could significantly elevate global battery pack prices.

Saudi Arabia is advancing an ambitious strategy to make critical minerals its third economic pillar alongside oil and petrochemicals, anchored in Vision 2030. 

The Kingdom has grown mining’s gross domestic product contribution to SR217.5 billion ($58 billion) in Q3 of 2024, doubling from the 2019 baseline.

New mining ventures and lithium exploration in the Arabian Shield highlight the Kingdom’s rising global partnerships. The sector is supported by nearly $300 million in exploration spending in 2024, a fivefold increase since 2020. Since 2020, the number of exploration companies has grown from six to 226, with a majority being foreign bidders, along with having 702 active licenses.

Industrial expansions strengthen phosphate and bauxite processing capacity. The Arabian Shield holds billions in untapped deposits. The Kingdom’s 933 active mining and exploration sites, including those holding an estimated 67 million ounces of gold as of 2025, demonstrate its readiness to lead.

As Paul Simons, a senior fellow at Yale’s Jackson School and former IEA deputy executive director, noted: “Critical minerals are becoming the new currency of global energy security.”  

Within this framework, Saudi Arabia represents a potential critical minerals powerhouse, bringing together a unique combination of mining resources, clean power and an advanced environmental sustainability and governance framework. 

Exploration activity in Saudi Arabia continues to rise, with thousands of exploration and production permits issued. Employment focuses on high-value jobs for Saudis, as Vice Minister Khalid Al-Mudaifer said: “The Kingdom is fast-becoming one of the most attractive destinations for mining investment, not only because of the scale of our resources but because of our ability to manage them with efficiency and reliability.”

Infrastructure is also key, with substantial investment in water, energy, and transport systems to support mining operations and connect them to global markets. Central to this investment is sustainability, with circular economy models mitigating impacts through recycling, waste reduction, and material recovery. These efforts are supported by real-time monitoring of emissions, water use, and energy efficiency, reinforcing the Kingdom’s commitment to responsible and sustainable industrial growth.

To consolidate global leadership in critical minerals, five coordinated actions are essential. First, within the framework of the UN Framework Convention on Climate Change Conferences of the Parties, Saudi Arabia should advocate recognizing critical minerals under agenda items such as response measures, the global stocktake, and the periodic review, ensuring a fair and equitable transition for resource-producing nations in the global clean energy shift.

Second, the Kingdom should establish a Gulf Critical Minerals Consortium to integrate advanced refining networks and standardize environmental protocols across the region.

Third, sovereign funds should lead a multi-trillion investment wave in AI-driven exploration and green hydrogen production, leveraging the National Geological Database’s full coverage.

Fourth, Saudi Arabia should establish a Global Minerals Innovation Hub, focusing on recycling rare earths and advancing technical expertise to sustain sectoral growth.

Fifth, the Kingdom should strategically advocate for the 2026 Future Minerals Forum, inviting presidents, prime ministers, and global mining leaders from major producing, processing, and exporting nations. 

The event should foster collaboration on innovative solutions, promote sustainable supply chains, and showcase Saudi Arabia’s long-term vision for the minerals industry, along with signing major commitments and strategic deals.

As the clean energy economy accelerates, critical minerals drive global prosperity. 

Guided by Vision 2030, alongside substantial reserves, Saudi Arabia is poised to lead in responsibly sourced minerals. Innovation, sustainability, and foresight will power its diversification and the world’s net zero transition to achieve a more sustainable and resilient future.

• Adnan Masoudy is manager of corporate sustainability, environment, and biodiversity at Ma’aden.

• Hassan Alzain is author of the award-winning book “Green Gambit.”