Saudi Arabia sees lithium investment options in Chile

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 “analysing 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 was interested in Chile, the world’s second-largest producer of 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 several other lithium deposits to private investment.

Alkhorayaf as well as Manara CEO Pierre Chenard participated in meetings on Monday with Chile’s mining ministry in which Codelco participated. Alkhorayaf was also set to meet with Codelco Chairman Maximo Pacheco on Tuesday, as well as miners SQM, Antofagasta and CAP.

However, Pacheco is currently travelling with Chilean President Gabriel Boric in the UAE on a trip aimed at increasing investment between the two countries.

Codelco did not comment on the meeting planned for Tuesday.

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

“We have very ambitious leadership,” he said. We are serious about sourcing it now … as soon as possible.”

In a meeting with his Chilean counterpart Aurora Williams, the two discussed the minerals supply chain, water supply issues and lithium, according to Chile’s mining ministry. Alkhorayaf also proposed setting up a group between both governments to explore possible collaboration, the ministry said in a statement.

Read: Chile says Saudi mining minister to visit, lithium expected on agenda