Saudi Arabia eyes lithium investment in Chile to boost EV battery production

Saudi Arabia’s Manara Minerals is looking at opportunities to invest in lithium production in Chile, mining minister Bandar Alkhorayaf said on Monday during a visit to the South American country.

Manara, a joint venture between state-owned miner Ma’aden and the Public Investment Fund (PIF), is “analyzing the different options,” Alkhorayaf said in an interview.

Saudi Arabia is working to secure access to lithium and other minerals as part of its goal to turn itself into a hub for battery and EV manufacturing as it aims to diversify its oil-dependent economy.

Alkhorayaf, the Saudi Minister of Industry and Mineral Resources, said Manara had interest in Chile, the world’s second-largest producer of the battery metal.

“I think we can see something happening with Manara on the Chilean assets here. It makes a lot of sense,” he said, adding that he saw “great commitment” from the Chilean government to help secure investment.

He noted that he was not aware of specific discussions underway. Chile’s state-run miner Codelco is currently seeking a partner for a major lithium project in the Maricunga salt flat, and the government recently opened a number of other lithium deposits to private investment.

Alkhorayaf participated in meetings on Monday with Chile’s mining ministry in which Codelco participated.

Alkhorayaf added that Saudi Arabia is interested in quickly securing supply of lithium, including from Chile, as it aims to produce EV batteries domestically.

“We have a leadership that’s very ambitious,” he said. “We are serious to source it now … as soon as possible.”