Saudi Arabia’s huge sovereign wealth fund will invest in mining assets internationally to secure supplies of minerals used in low-emissions energy tech, Ben writes.
Driving the news: The fund and state-owned mining company Ma’aden announced a joint venture to obtain minerals “essential for Saudi Arabia’s industrial development as well as the resilience of global supply chains.”
- It will initially focus on iron ore, copper, nickel and lithium.
- The venture plans to invest $3 billion in its first year, per Bloomberg and the FT.
Why it matters: The move signals the petro state’s push to diversify its economy, even as it intends to maintain its oil market power for decades.
It’s also part of global competition in the market for materials used in batteries, renewable power equipment and other climate tech.
What they’re saying: Ma’aden CEO Robert Wilt, in a statement, said the venture will provide a “foothold in the global commodity value chain, where major supply constraints are combined with growing demand.”
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