Saudi Arabia invests heavily in EV batteries, mining & manufacture

By Al Mayadeen English
Source: Bloomberg
23 Aug 2022 17:00
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Saudi Arabia holds a goal that by the end of the decade, 30% of cars roaming roads in Riyadh would be EVs.

The Lucid Air speed test car exhibited at the 2017 New York International Auto Show in New York City, US, on April 13, 2017. (Reuters)

Saudi Arabia looks to diversify its energy sources and may be going electric by acquiring minerals used for batteries and taking a stake in the electric vehicle supply chain.

With this project rising against a background of shortages and energy crises, Riyadh has brought lithium miners and matter manufacturers to go through with the operations. Saudi Arabia sets a target that by the end of the decade, 30% of cars roaming roads in Riyadh would be EVs.

EV Metals Group Plc, an Australian battery chemicals, and technology company announced that it is launching the development of its processing plants for lithium hydroxide monohydrate, which is a key material for batteries.

The company has worked with Riyadh for the past 2 years on feasibility studies. Now, the facility works on producing high-grade chemicals for cathode materials in power packs, which is an essential material that EV makers are trying to acquire.

Avass Group, another Australian firm, also announced an agreement in February to manufacture EVs and lithium batteries jointly with Saudi Arabia.

In addition to these ventures, Saudi Arabia's Ministry of Industry and Mineral Resources announced $6 billion in projects to back up the mining industry at home.

The kingdom, furthermore, has also taken in 150 exploration license applications from foreign companies.

The government will also purchase about 100,000 electric vehicles over a period of 10 years from Lucid Group Inc. Saudi Arabia has a stake in the EV-making company.

Foxconn, the Apple iPhone's main assembler, is also looking to establish a $9 billion facility for chips and EV parts.

Riyadh is spending more than $3 billion in financing and initiatives to build and operate the factory for the next 15 years.

Saudi Arabia's new EV projects will help decrease costs and will ensure Riyadh's foot in the global electric vehicle supply chain.

Riyadh's position on the map is also strategic: It would enable the country to supply Europe with EVs, while receiving resources from China and Australia.

Riyadh is issuing mining licenses for mineral resources extraction, costing almost $1.3 trillion. Saudi Arabia has lithium resources around its oil fields, a scarce resource essential for battery manufacture - and, in global shortage too.

It's too late - almost - for the US and Europe to catch up with Riyadh's fast-paced growth.