The United States and Saudi Arabia are proactively engaging in collaborative discussions to harness vital metals from Africa. These metals will play a significant role in bolstering their energy transitions, as per insights shared by informed sources.
This collaborative initiative involves a Saudi state-supported venture strategically investing in mining assets, estimated to be worth $15 billion, spread across African nations including the Democratic Republic of Congo, Guinea, and Namibia. This investment structure will enable US enterprises to access a portion of the output, fostering a mutually beneficial relationship.
Emphasizing the commitment to sustainable energy solutions, the US is ardently working to diversify its supply sources for essential metals like cobalt and lithium. These metals are indispensable for modern applications, including electric vehicle batteries, laptops, and smartphones, marking a clear path towards a greener future.
Highlighting a precedent to this commitment, in July, the Saudi Arabian Mining Co (Ma’aden) and the Saudi Public Investment Fund (PIF) tactically acquired a stake in Brazilian Vale’s base metal unit. Concurrently, the US-based investment firm, Engine No. 1, also made a significant acquisition.
Further emphasizing the regional strategy, the PIF has expressed keen interest in the Democratic Republic of Congo’s rich mineral resources. Via its collaboration with Ma’aden in the $3 billion Manara Minerals venture, it aims to tap into resources like cobalt, copper, tantalum, iron ore, nickel, and lithium.
In a bid to further strengthen this global sustainable metals initiative, the White House is actively reaching out for the financial support of other sovereign-wealth funds in the region. Saudi Arabia has emerged as a key collaborator in this venture, showcasing a shared vision for a sustainable energy future.
Both the Saudi government and the White House are anticipated to share more insights on this partnership soon.
