Saudi Arabia, the oil capital of the world, wants to go electric and clean (in terms of energy), and it is getting its hands on important battery minerals and taking part in the electric vehicle supply chain, according to Bloomberg.
AndAccording to BloombergThis “should leave countries and companies vulnerable to announcing ambitious plans, but then doing little to implement them on high alert.”
As shortages widen and companies scramble to get expensive resources in a bid to expand production, Saudi Arabia has enlisted lithium miners and battery makers to get started, filling a critical gap when the country wants 30% of cars on its capital’s roads to be electric. by the end of this decade. According to Bloomberg.
For its part, Australian electric vehicle battery chemical and technology company Metals Group Plc said it has begun developing its plants to process lithium hydroxide monohydrate — a key battery compound — deepening its plans in the Kingdom as the company has worked with its partners over the past two years for feasibility studies and plans. The facility is now built to produce high-quality chemicals for cathode materials in powertrains, an important ingredient EV manufacturers are trying to get their hands on.
Another Australian company, Avass Group, also announced the signing of an electric vehicle and lithium battery production agreement with the country in February.
In addition to these commitments, the Saudi Arabian Ministry of Industry and Minerals has announced $6 billion in projects as part of a larger effort to develop the mining industry. In addition, it processes about 150 applications for exploration licenses from foreign companies. the government signs an agreement to buy up to 100,000 electric vehicles over 10 years from Lucid Group Inc, an electric vehicle manufacturer that has a stake in Saudi Arabia’s sovereign wealth fund, and more than $3 billion in funding and incentives to set up the plant. over the next decade and a half.
Foxconn Technology Group, the largest iPhone assembler, is in talks to set up a $9 billion facility that could make chips and parts for electric vehicles.
Building manufacturing and processing facilities within Saudi Arabia’s borders is a “smart and far-sighted” move, according to Bloomberg, as it will not only help cut costs in the long run, but will immediately – and most importantly – ensure the country becomes an important link in the automotive chain. creating value for Global Electric.
And Bloomberg explained: “The Kingdom of Saudi Arabia has the resources, capital and conviction that many companies and countries lack, and now it is using its advantage in the price and demand for oil to bring about a transformation that others is trying hard to achieve, and added to this is its geographical position to supply Europe and receive resources from China and Australia, as the Kingdom began to quickly evaluate and issue mining licenses to capitalize on its mineral resources, with potential dollar value USA. 1.3 trillion, compared to the United States, where permits are on hold and approvals for these mining plans have fallen to their lowest level in several years.”
At the same time, it can also develop its own resources, as lithium in salt by-products around oil fields has become a major source of the metal with an increasing supply shortage, while researchers are now working on cost-effective ways to remove and process lithium. into a form pure enough to be used in batteries, the company newspaper said.
And Bloomberg noted that “Saudi Arabia’s progress in battery materials” as “the lack of costs and the struggle of companies to tighten environmental regulations in the future turn what is a serious threat to its economy into a long-term benefit. ”
And the paper believes it “shouldn’t be surprising if companies and countries soon end up trading their dependence on Saudi oil for basic battery materials, as they did with China.”
Source: Bloomberg