Saudi Arabia Eyes Lithium Investments in Chile

Saudi Arabia's Manara Minerals, a joint venture between Ma'aden and the Public Investment Fund, is exploring investment opportunities in Chilean lithium production. The initiative aims to diversify Saudi Arabia's economy by securing essential minerals for battery and EV manufacturing. Discussions with Chile's mining ministry and state-run miner Codelco are ongoing.

Saudi Arabia's Manara Minerals is exploring potential investments in lithium production in Chile, according to remarks made by mining minister Bandar Alkhorayaf during his visit to the South American nation.

Manara, a joint venture between the state-owned mining company Ma'aden and the Public Investment Fund (PIF), is considering various options for investment in Chile. This move is part of Saudi Arabia's broader strategy to become a hub for battery and electric vehicle (EV) manufacturing, as it seeks to diversify its oil-dependent economy.

Alkhorayaf noted Manara's interest in Chile, the world's second-largest producer of lithium. "I think we can see something happening with Manara on the Chilean assets here. It makes a lot of sense," Alkhorayaf said, emphasizing the Chilean government's commitment to facilitating investment.

While specific discussions have yet to be confirmed, Chile's state-run miner Codelco is currently looking for a partner for a major lithium project in the Maricunga salt flat. The Chilean government has also opened other lithium deposits to private investment, with Alkhorayaf attending meetings involving Chile's mining ministry and Codelco.

Saudi Arabia aims to rapidly secure a supply of lithium, including from Chile, to support its domestic production of EV batteries. "We have a leadership that's very ambitious," Alkhorayaf said. "We are serious to source it now ... as soon as possible."

(With inputs from agencies.)