goes on the hunt for new mining assets abroad.
Ma’aden will own 51 percent of the venture while the Public Investment Fund (PIF) will own 49 percent. The fund’s initial capital would be $50m, but that number could climb to over $3bn, the companies said.
The new fund aims to take equity stakes in existing assets and companies to supply the raw metals the kingdom needs for development, with investments in iron ore, copper, nickel, and lithium.
The global energy transition relies on the strategic minerals needed for renewable energy and battery storage, and our focus on these will give us a foothold in the global commodity value chain.
Global powers have been scrambling for rare metals that are critical to the production of new technologies like electric vehicles and solar panels.
To deepen cooperation with Saudi Arabia in mining and manufacturing, the UK said the deal allowed it to ensure critical mineral supply chains are not overly reliant on any one country, with supplies currently dominated by China.
Saudi Arabia sees mining as a key component of its Vision 2030 strategy to diversify its economy outside of fossil fuels. The kingdom values its mineral wealth at more than $1.3 trillion.