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Saudi minister’s Chile visit focuses on lithium

1 August 2024

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef has started his visit to Chile, the world’s second-largest lithium producer.

According to the Saudi Press Agency (SPA), Alkhorayef explored investment opportunities in the production and processing of lithium, copper and iron ores during his visit to major mining companies and specialised technology centres in the Chilean capital, Santiago.

Alkhorayef also met with Chile’s main copper producer Codelco chief executive Ruben Alvarado to discuss investment opportunities in mineral production, particularly lithium and copper.

Madrid-headquartered Almar Water Solutions, part of Saudi conglomerate Abdul Latif Jameel, said in June that it is keen to partner with Codelco in its planned Maricunga lithium mining project.

Almar wants to leverage its water solutions and technology in the extraction of battery-metal lithium, a water-intensive process, as well as help bring in a financial partner to the project, a Reuters report previously stated.


Photo: SPA

Before meeting Alvarado, Alkhorayef met with several Chilean ministers to discuss ways to bolster cooperation in the industrial and mining sectors and lithium production, a key component in the production of battery electric vehicles. Talks also focused on increasing Saudi exports of phosphate fertilisers to Chile.

Alkhorayef met with the Chilean Mining Minister Aurora Williams to explore collaboration in the mining sector, where he highlighted key export and import industries, including chemicals, automotive parts and electronics.

In a meeting with Chile’s Finance Minister Mario Marcel, Alkhorayef discussed boosting trade relations between the two countries, and Saudi endeavors to become a leader in the electric vehicle (EV) industry.

BEV production hub

MEED understands Saudi Arabia is interested in sourcing lithium abroad as part of its energy transition plans, particularly in establishing a domestic EV manufacturing industry. The kingdom aims to produce 500,000 EVs and for EVs to account for 30% of new car sales in the kingdom by 2030.

According to industry experts, the potential deal or deals may not necessarily involve importing lithium from Chile to Saudi Arabia as much as Saudi Arabia wanting to secure an integrated vertical supply chain for industries it plans to build that require the mineral.

Lithium can be found in rock ores, which are mined and crushed, or in briny water, from which it can be extracted using evaporation.

It is an essential component of clean energy technologies, from EV batteries to the big battery energy storage systems used to store electricity at power plants.

Domestic sources

In May this year, Saudi Arabian Mining Company (Maaden) said it had undertaken a pilot project that successfully extracted lithium from seawater, although not at commercially viable levels.

In July last year, Maaden signed an agreement with US-based Ivanhoe Electric to explore the Arabian Shield zone – roughly the size of Switzerland – for high-demand minerals such as copper, nickel, gold, silver and possibly lithium.

Earlier this month, Australia-headquartered EV Metals Group (EVM) announced the successful completion of an initial exploration programme at the Balthaga lithium project in Saudi Arabia.

UK-listed Power Metal Resources and EVM’s special purpose subsidiary, Riwaq Al-Awarid for Mining, led the initial exploration programme, which is “an important milestone in unlocking value from the Balthaga project’s tenement package”.

The Balthaga project is located 450 kilometres (km) east of Jeddah in the southeast of the Arabian Shield. It comprises 13 tenements, covering a total area of approximately 1,200 square kilometres (sq km).

https://image.digitalinsightresearch.in/uploads/NewsArticle/12257743/main.jpg
Jennifer Aguinaldo

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