Peru's foreign minister, Elmer Schialer, expressed support for US policy backing Saudi Arabia's efforts to become a global critical minerals powerhouse, aiming to counterbalance China's dominance and reduce costs. Speaking at the Munich Security Conference, Schialer described the US approach as "a good strategy" and emphasized the potential economic benefits of having multiple centers for refining and finalizing products.
Western countries, led by the US, are keen to loosen China's grip on critical minerals processing, with China currently controlling about 90% of the world's capacity. In late January, Beijing imposed new restrictions on exports to the US in response to President Donald Trump's tariffs.
Saudi Arabia has made significant strides in positioning itself as a critical minerals hub, aligning with its Vision 2030 economic diversification plan. The kingdom aims to strengthen local processing, build resilient supply chains, and develop substantial reserves of copper, gold, rare earths, potash, and bauxite. Additionally, Saudi Arabia plans to expand domestic electric vehicle manufacturing.
In January, Riyadh unveiled a new $100 billion mineral investment project, with $20 billion already in the final engineering phase or under construction. The Ministry of Industry and Mineral Resources increased the estimated value of unexploited mineral resources from $1.3 trillion to $2.5 trillion in early 2024, driven by new discoveries. State-controlled Aramco has also partnered with Saudi state mining company Ma'aden to explore and produce energy transition minerals.
