Public Investment Fund is turning the Kingdom into a global hub for critical minerals.
As the global energy landscape shifts toward renewables, the demand for critical minerals is surging. Technologies like solar panels, wind turbines, and electric vehicles require far more raw materials than traditional fossil fuel systems, up to ten times more, according to the International Energy Agency. To meet global climate targets, production of minerals such as lithium, cobalt, and rare earths must increase up to six-fold by 2040.
Recognizing this opportunity, Saudi Arabia’s Public Investment Fund (PIF) is taking bold steps to position the Kingdom as a major player in the global mining sector.
“PIF is an impactful investor and a key driver of Saudi Arabia’s economic diversification,” says Muhammed AlDawood, Head of Industrials and Mining Sector, MENA Investments at PIF. “It’s a global challenge—and we’re thinking globally.”
Innovation Through Collaboration
Over the past decade, PIF-backed mining firm Ma’aden has diversified beyond oil into gold, bauxite, and copper. Now, it is focused on unlocking the mineral potential of the Arabian Shield—an area rich in resources critical to the green energy transition.
“Ma’aden is now one of the world’s top spenders on exploration in a single country,” says Robert Wilt, CEO of Ma’aden. “We believe there are significant undiscovered resources here. Our mission is to find and develop them responsibly.”
To accelerate discovery and development, Ma’aden is investing in advanced technologies such as AI, digital twin simulations, and robotics. These tools not only increase efficiency but reduce the typical 10-year timeline from exploration to production.
In a major move, Ma’aden partnered with US-based Ivanhoe Electric, acquiring a 9.9% stake for $126.5 million. Together, they will explore 48,500 square kilometers, an area larger than Denmark—for strategic minerals like copper, nickel, and silver.
Ma’aden is also funding education and workforce development programs to train the next generation of Saudi mining professionals. “We’re serious about preparing Saudi youth for leadership in the mining sector,” says Wilt.
Building an End-to-End Ecosystem
Mining is just the start. PIF’s strategy extends across the value chain, exploration, refining, and manufacturing—to build a sustainable and globally competitive mining ecosystem.
“As Saudi Arabia diversifies its economy, it’s our role to provide the essential metals,” Wilt says. This effort supports Vision 2030’s goal of producing half of the country’s electricity from renewables by the end of the decade. That clean energy can, in turn, power cost-efficient processing industries like green steel.
In 2023, PIF acquired Saudi Iron and Steel Company (Hadeed) and entered a joint venture with Aramco and Baosteel to build a steel plate manufacturing facility. Meanwhile, PIF’s push into the automotive sector, hosting manufacturers like Lucid, Ceer, and Hyundai—creates demand for domestically processed metals, closing the loop in the industrial value chain.
A New Pillar of Global Supply
With rising concerns over concentrated supply chains, PIF is positioning Saudi Arabia as a reliable source of minerals for both Eastern and Western markets.
In 2024, Manara Minerals, a joint venture between PIF and Ma’aden, acquired a 10% stake in Vale Base Metals for $2.5 billion. The deal gives the Kingdom access to copper, nickel, and cobalt operations in Brazil, Canada, and Indonesia. Vale plans to invest $25–$30 billion in new projects over the next decade.
These moves support PIF’s vision of a ‘minerals super region’ spanning Africa, the Middle East, Central Asia, and South Asia. PIF and Ma’aden are also committed to sustainability, targeting net zero by 2050, in alignment with Saudi Arabia’s 2060 climate goals.
A World-Class Mining Environment
To attract foreign investment, Saudi Arabia has overhauled its mining regulations and launched incentives to create a business-friendly environment. In 2024 alone, the government announced $182 million in exploration incentives and issued 33 new mining licenses.
Former Anglo American CEO Mark Cutifani, now chairman of Vale Base Metals, said at the Future Minerals Forum in Riyadh: “This is a historic opportunity to build a sustainable mining industry from the ground up. Moments like this are rare.”
AlDawood adds, “PIF is in it for the long haul. We’ve proven our commitment and will continue to invest in building a resilient, forward-looking mining sector.”
With strong leadership, innovative technology, and long-term investment, Saudi Arabia is redefining its place in the global minerals economy, fueling the world’s transition to clean energy.
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