Saudi Arabia’s Ministry of Industry and Mineral Resources said it has secured US$6Bn for a steel plate mill complex and EV battery metals plant as part of plans to attract US$32Bn of investment into the mining sector.

Saudi Arabia is best known for its key role in the oil and gas industry. Global net-zero initiatives on decarbonisation are no doubt going to impact the country’s economy. To mitigate this risk, Saudi Arabia has identified nine projects to kickstart its diversification. The country’s tourism minister spoke to the UN about the importance of climate change action, supporting the country’s narrative to diversify.

The US$6Bn steel investment highlights the importance of the steel industry to the energy transition, with the steel complex aiming to supply a range of industries, including shipbuilding, oil and gas, construction and defence, as well as include “green” flat steel for the automotive, food packaging, machinery and equipment, and other industrial sectors. The steel sector accounts for close to 10% of global carbon emissions and will play a key role in meeting net-zero targets, both directly and indirectly.

A US$2Bn battery metals plant is also already underway in Saudi Arabia. While the country will look to support its domestic decarbonisation (50-100k EVs purchased through an agreement over the next 10 years), Industry and Mineral Resources Minister Bandar al-Khorayef noted that “...the investments will continue to position the Kingdom as a mining production and logistics hub for a region that stretches from Africa to Asia […]”, showing the intention to supply key sectors globally.

The processing complex for the production of high-purity chemicals and metals required in lithium-ion batteries for EVs and ESS is being developed by Australia-based battery chemicals and technology company EV Metals Group (EVM).  The multi-stage project includes a plant to produce lithium hydroxide; a nickel chemicals plant to produce nickel, cobalt and manganese sulphate; and a pre-cathode active materials plant.