The United States and Saudi Arabia in Talks to Secure Metals in Africa for Energy Transitions
The United States and Saudi Arabia are currently engaged in discussions to obtain metals from Africa that are crucial for their respective energy transitions, as reported by the Wall Street Journal. According to sources familiar with the matter, a state-backed Saudi venture plans to invest $15 billion in mining assets across African countries such as the Democratic Republic of Congo, Guinea, and Namibia. This investment would grant U.S. companies the rights to purchase a portion of the produced metals.
The primary objective of this collaboration is for the U.S. to catch up with China in the race for supplies of cobalt, lithium, and other metals required for manufacturing electric car batteries, laptops, and smartphones.
A similar partnership took place in July when Saudi Arabian Mining Co (Ma’aden) and the Saudi Public Investment Fund (PIF) acquired a 10% stake in Brazilian Vale’s base metal unit. Additionally, U.S. investment firm Engine No. 1 obtained a 3% stake.
According to the newspaper, the PIF initiated discussions with Congo in June regarding investments in cobalt, copper, and tantalum through their joint venture with Ma’aden, called Manara Minerals. Manara Minerals is also focusing on the extraction of iron ore, nickel, and lithium.
While the White House is seeking financial support from other sovereign-wealth funds in the region, talks with Saudi Arabia have progressed the furthest, the Journal reported. However, both the Saudi government and the White House have yet to respond to requests for comment.
