The UK and Saudi Arabia are poised to finalize a partnership this week aimed at enhancing cooperation in the development of secure supply chains for critical minerals between the two nations.
In a statement released Jan.14, the UK government announced that Industry Minister Sarah Jones will sign the agreement during her attendance at the Future Minerals Forum in Riyadh. The Minister is attending the forum as part of a trade delegation focused on creating new opportunities for UK critical minerals companies.
The Memorandum of Understanding is due to be signed following a bilateral meeting between Minister Jones and Saudi Arabia's Industry and Mineral Resources Minister, Bandar al-Khorayef.
During the Forum, Minister Jones will also address attendees, underscoring the significance of critical minerals to the UK economy.
"In the global race for economic growth, and in an increasingly uncertain world, the UK must secure supplies of these critical minerals," she is expected to state. "That's why this government is developing a Critical Minerals Strategy and forging new partnerships with allies like Saudi Arabia."
This new partnership comes as the UK prepares to unveil a new critical minerals strategy, anticipated in 2025. According to the government, the new strategy will focus on enhancing international collaboration with key partners, strengthening UK supply chains, reinforcing national security, and supporting economic growth.
The announcement comes amid growing concern about an impending global shortfall in the availability of materials essential to the energy transition such as lithium, graphite, copper, cobalt and nickel.
In recent years, the UK has established a series of critical minerals agreements with international partners, including South Africa, Canada, Australia, Kazakhstan, Mongolia, Zambia, Japan, and Indonesia.
The UK is also part of the Mineral Security Partnership, a group of 15 nations committed to driving investment into strategic critical mineral projects.
Deal aligns with Saudi Arabia's mineral ambitions
This partnership highlights the growing importance of critical minerals in both nations' economic strategies. In Saudi Arabia, the latest collaboration aligns with the Vision 2030 programme, which aims to diversify the economy and position the kingdom as a global industrial and economic leader. Mining has been identified as one of three pillars of national development, with Saudi Arabia seeking to unlock an estimated $1.3 trillion in mineral resources and increase the minerals sector's GDP contribution from $17 billion to $64 billion by 2030.
Saudi Arabia's Ministry of Industry and Mineral Resources has reiterated its commitment to developing the country's substantial reserves of copper, gold, rare earths, potash, and bauxite, while also expanding domestic electric vehicle manufacturing.
In November, UK-based Vedanta Resources announced plans through its wholly owned subsidiary, Vedanta Copper International, to invest $2 billion in a series of copper projects in Saudi Arabia, following a memorandum of understanding signed with the Saudi government.
Platts, part of S&P Global Commodity Insights, assessed battery-grade lithium carbonate at $10,000/mt CIF North Asia Jan. 10, flat day over day but down $300 week over week.
