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ADQ and Eni aim for cooperation on critical minerals

25 February 2025

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Abu Dhabi’s industrial holding company ADQ has signed a memorandum of understanding (MoU) with Italian energy major Eni to identify potential areas of cooperation to strengthen supply chains for critical minerals that are essential to facilitating the energy transition.

The collaboration will prioritise potential investments in regions such as Africa, North America and Central Asia, where both companies will pursue opportunities and explore synergies across the entire critical and strategic minerals value chain, from mining to refining, processing and downstream applications.

In addition, the MoU will assess the feasibility of establishing refining and processing facilities in the UAE and Italy, as well as in other strategic hubs.

The International Energy Agency projects that the consumption of critical minerals could increase six-fold by 2050. This surge in demand is driven by the growing adoption of clean energy technologies, including electric vehicles, wind turbines, solar panels and energy storage systems, all of which rely on minerals such as lithium, cobalt, nickel and rare earth elements for their production.

Prior to signing this MoU with Eni, ADQ formed a joint venture in January with US-based Orion Resource Partners to invest in the metals and mining sector.

The 50:50 joint venture, called Orion Abu Dhabi, will be based in the Abu Dhabi Global Market and will focus on strategic investments in mining companies in emerging markets in Africa, Asia and Latin America.

With an initial capital commitment of $1.2bn over the first four years, Orion Abu Dhabi aims to enhance supply chain security by sourcing essential minerals such as copper and high-grade iron ore. The joint venture will use various investment instruments, including equity, senior debt and production-linked instruments such as royalties and offtakes.

READ THE FEBRUARY MEED BUSINESS REVIEW

Trump unleashes tech opportunities; Doha achieves diplomatic prowess and economic resilience; GCC water developers eye uptick in award activity in 2025.

Published on 1 February 2025 and distributed to senior decision-makers in the region and around the world, the February MEED Business Review includes:

> WATER & WASTEWATER: Water projects require innovation
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Indrajit Sen

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    It also tests the capacity of developers and engineering, procurement and construction (EPC) contractors, which are equally beholden to pursue new contracts in Saudi Arabia.

    The kingdom faces a pending deadline to decommission ageing liquid fuel-fired plants as part of an overall energy transition plan for its electricity sector. It aspires to procure 20GW of renewable energy capacity annually until 2030 "subject to demand growth", and have renewable sources account for half its electricity generation capacity at the end of the forecast period.

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    Even those extremely cautious about solar PV projects' ability to deliver desired profits, or those being obliged to say no to thermal projects that do not offer a clear carbon capture path, can pivot to the rapidly expanding battery energy storage projects or indeed the potential hydropower projects in Neom in Saudi Arabia.

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    READ THE MARCH MEED BUSINESS REVIEW – click here to view PDF

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