An Integrated Supply Chain
Saudi Arabia's path to mineral sovereignty
Mining nationalism, or what I prefer to call supply sovereignty the integration of upstream, midstream, and downstream sectors is not exclusive to KSA. Similar paths are being attempted in countries like Canada and the United States through their respective policies. The main difference lies in the pace of progress. “Saudi Arabia’s role in the energy transition is not limited to the mining of critical minerals but also includes the development of a comprehensive hub for mineral processing. Through the building of smelting and transformation capacities to supply global markets, the country is on its way to becoming a central economic and geopolitical actor in the global mineral processing chains […] As the supply of critical minerals has become a global concern, Saudi Arabia’s push to become a mineral exploration and processing hub could help diversify supply chains and offer more security for the global transition to clean energy,” commented Rémi Piet, co-founder and senior partner, Embellie Advisory.
Regarding integration, Luke Fitzgerald, CEO of EV Metals Group, has much to share. Through their "mine-to-refine" strategy, the company operates various subsidiaries that connect upstream mining assets with midstream refining, creating an integrated supply chain for critical minerals to produce high-purity battery chemicals at a lithium refinery in KSA. “The Lithium Chemical Plant (LCP) in Yanbu Industrial City is the first of its kind in the region, designed to serve as a midstream hub and a cornerstone of the Kingdom’s industrial diversification efforts under Vision 2030,” he explained.
The LCP is in advanced pre-development, with frontend engineering progressing well, and now the company is working to secure equity and debt financing, aiming for the final investment decision and construction by late 2025, with production expected by late 2027. For Fitzgerald, geography is crucial: “KSA is ideally positioned to become a midstream hub for processing of critical minerals, with growing domestic demand and proximity to key growth markets including Europe, Turkey, the Gulf region, and India. As the Kingdom’s mining sector matures and local demand increases, the country is making significant strides in developing a comprehensive EV supply chain and supporting ecosystem,” he added.
Open Mineral identified an opportunity to digitize the upstream base metals value chain within this integrated downstream-to-upstream model. Using AI, they connect mines, refineries, and engineering firms while providing insights into financing, pricing and market conditions. Their approach blends technology and AI with the traditional business of trading. “Our system considers factors like financing options, product pricing that accounts for fluctuating market conditions and regional arbitrage opportunities, giving mines and smelters the insights they need for informed decision-making on future business strategy,” commented Johan Knapp, business development, ores and concentrates.
According to Boris Eykher, co-founder and CEO of Open Mineral, this kind of technology benefits vertically integrated mines and smelters. By inputting all costs into one system alongside true market terms, they can determine the optimal production path to enhance profitability. He added: “To really add value in an industry dominated by giants, you need to go beyond the basics and offer something extra. Technology has become the natural next step for the industry’s evolution, yet large, established companies often struggle with experimenting.”
Saudi Arabia alone cannot meet the demand for the minerals required to achieve its vision of an integrated supply chain. To succeed, it will need allies within the Super Region, where it serves as a leading voice, and from other global partners. To this end, the Public Investment Fund and Ma’aden have established Manara Minerals, which they describe as the trading arm, to acquire stakes in overseas assets. Initially, Manara will focus on investing in iron ore, copper, nickel and lithium, securing physical offtake of critical minerals to ensure supply security for domestic downstream sectors. So far, Manara Minerals has invested US$3.4 billion in Vale Base Metals Limited.
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