Energy Minister says growing demand for critical minerals ‘major challenge’

Prince Abdulaziz bin Salman, Saudi Energy Minister

Saudi Energy Minister Prince Abdulaziz bin Salman said the surging demand for critical minerals poses a significant challenge, sparking a global race to secure a sustainable and continuous supply of these resources.

Speaking at the Future Minerals Forum today, the minister highlighted the relationship between the energy transition and the growing demand for minerals. He noted that the expected demand for lithium could increase sevenfold, adding that each ton of lithium production generates 15 tons of carbon emissions.

“We must be aware of what lies ahead due to mining industries, which contribute to climate change,” he said.

Prince Abdulaziz emphasized that oil is no longer a challenge for energy security, as the mining sector has become an integral part of ensuring it.

Looking ahead to Saudi Arabia’s 2030 energy goals, he said domestic demand for essential minerals is expected to be significantly higher than current levels. “We are working diligently to produce these minerals,” he added.

The minister also stressed the importance of localization, saying the Kingdom is focused on more than just local content. “We aim to localize the entire supply chain. Our ambition surpasses local content targets, aiming for comprehensive value chain localization, including manufacturing sub-components and refining raw materials. Our challenge is tough, but the rewards are greater as we address the critical task of securing the mining sector,” he said.