Saudi Arabia To Invest In Chilean Lithium For Electric Vehicle Battery Production

Saudi Arabia's Manara Minerals is exploring investment opportunities in lithium in Chile, according to mining minister Bandar Alkhorayaf. During his visit to the South American nation, Alkhoray mentioned that Manara is "analyzing the different options" available, according to Reuters reports.

Manara Minerals is a joint venture between Saudi Arabia's state-owned miner Ma'aden and the Public Investment Fund (PIF). The country aims to secure access to lithium and other essential minerals as part of its strategy to become a hub for battery and electric vehicle (EV) manufacturing, diversifying its oil-dependent economy.

Alkhorayaf, Saudi Minister of Industry and Mineral Resources, expressed interest in Chile, which is the world's second-largest producer of lithium. He noted that Manara could potentially invest in Chilean assets, stating, "I think we can see something happening with Manara on the Chilean assets here. It makes a lot of sense."

The minister highlighted the commitment from the Chilean government to facilitate investment. However, he clarified that he was not aware of any specific discussions currently taking place. Chile's state-run miner Codelco is actively seeking a partner for a significant lithium project in the Maricunga salt flat. Additionally, the government has recently opened several other lithium deposits for private investment.

On Monday, Alkhorayaf participated in meetings with Chile's mining ministry, which included representatives from Codelco. These discussions are part of Saudi Arabia's broader efforts to secure a steady supply of lithium for domestic EV battery production.

Alkhorayaf emphasized Saudi Arabia's urgency in securing lithium supplies quickly. "We have a leadership that's very ambitious," he said. "We are serious to source it now ... as soon as possible."

Saudi Arabia's focus on acquiring lithium aligns with its goal to produce EV batteries domestically. This move is part of a larger plan to diversify its economy away from oil dependency and establish itself as a key player in the global battery and EV market.