Riyadh, Saudi Arabia — Saudi Arabia and the United Kingdom on Thursday signed an agreement to jointly develop critical minerals supply chains.
The agreement was signed between Saudi Arabia’s Minister of Industry and Mineral Resources, Bandar Al Khorayef, and the United Kingdom’s Secretary of State for Business and Trade, Kemi Badenoch.
Critical minerals are vital in producing various technologies, including electric vehicles, wind turbines, and solar panels.
The shift towards a low-carbon economy necessitates an unprecedented supply of minerals. For instance, lithium supply will need to increase by approximately 700%, nickel production by around 100%, and copper production by roughly 50% between 2020-30 compared to 2010-2020 within a 1.5°C-degree pathway.
“Saudi Arabia and the United Kingdom share a common vision of ensuring the availability of minerals necessary for the energy transition while upholding high sustainability standards,” said Al Khorayef. “Our collaborative approach emphasizes international collaboration.”
Al-Khorayef explained that the agreement is part of increasing cooperation in bilateral relations between the two countries in the industrial and mining sectors and contributes to supporting joint global efforts to reach a green future which requires new sources of critical minerals.
He stressed that the two countries share a vision aimed at ensuring the availability of minerals necessary for the transition to clean energy, while maintaining high standards of sustainability, as the declaration of intent will allow the two countries to diversify supply chains for critical minerals for several mineral intensive industries, including manufacturing, aviation of electric vehicles, defense, and renewable energy.
UK Business and Trade Secretary of State Kemi Badenoch said, “Critical minerals are essential to our everyday life – from electric vehicles and medical devices to wind turbines and solar panels.
She added, “The agreement I have signed today with Saudi Arabia will strengthen our partnership on supply chain resilience and industrial cooperation- brilliant news for both our economies.”
This agreement marks a significant step in the global endeavor to increase the supply of critical minerals.