Oil is no longer an energy security challenge as critical minerals take center stage, Saudi minister says

Oil is no longer an energy security challenge as critical minerals take center stage, Saudi minister says


Aerial view of brine ponds and processing areas of the lithium mine of the Chilean company SQM (Sociedad Quimica Minera) in the Atacama Desert, Calama, Chile, on Sept. 12, 2022.

Martin Bernetti | Afp | Getty Images

RIYADH, Saudi Arabia – The energy minister of Saudi Arabia – the Gulf kingdom whose wealth and power rests disproportionately on its vast petroleum reserves – believes that oil is no longer an energy security challenge.

Instead, he said, the coming battle will be for entirely different materials buried under the ground: critical minerals.

“Oil is no longer an energy security challenge – it’s going to be gas, electricity, predominantly minerals,” Saudi Energy Minister Abdulaziz bin Salman told attendees at the annual Future Minerals Forum in Riyadh.

“Today some of these countries, they have, as a country, 50% of the ownership of some of these required minerals and critical minerals … countries are racing to access critical minerals and secure their own supply chain. Rushing to secure access to resources will ultimately lead to higher emissions, higher metals costs and higher energy prices.”

The energy minister was referring to minerals critical to the energy transition and advanced technologies – including lithium, cobalt, nickel, graphite, manganese and other rare earth elements crucial for making things like electric vehicles, batteries, renewable energy technology, computers, and household goods. 

China currently controls roughly 60% of the world’s production of rare earth minerals and materials, according to a recent report by Rice University’s Baker Institute for Public Policy. That has many countries, particularly those in the West, concerned, as these resources become ever more important to national security and economic stability.

“More AI [artificial intelligence] and data centers means more energy,” Bin Salman said. “You’ll have AI, data centers, mining, crypto mining … can you imagine what will happen to energy demand? Can you imagine the race between mining to create energy, and energy to create mining and the growth of these economies?” the energy minister asked. 

 “I really don’t like the idea of being the energy minister at that time.”

'We need a lot more power' to support the digital transformation, says Vertiv's David Cote

Electricity demand around the world is surging, fueled by the rising demand for data centers required to power AI, factories, electric vehicles, and hotter and longer summers. A recent energy department memo cited in numerous press reports projected that U.S. power grids could see as much as 25 gigawatts of new data center demand by 2030.

Critical minerals and rare earth metals are also essential for renewable technology like solar panels and wind turbines, which are central to many countries’ efforts toward an energy transition away from fossil fuels. China refines 95% of the world’s manganese — a chemical element used in batteries and steel manufacturing — despite mining less than 10% of its global supply.

Saudi Arabia on Wednesday announced it is working on a $100 billion mining investment as it aims to become a global hub for both mining and minerals extraction and processing. The kingdom plans to significantly expand its exploration for lithium within its own borders, as well as for other critical minerals. 

Boosting its minerals sector and investing in a domestic supply chain is part of Saudi Arabia’s Vision 2030 mission to diversify its economy away from oil.



Source

Norway’s Tesla obsession defies Europe’s Musk backlash
World

Norway’s Tesla obsession defies Europe’s Musk backlash

An electric car at a charging station in the Norwegian capital of Oslo on Sept. 25, 2024. Jonathan Nackstrand | Afp | Getty Images OSLO, Norway — Tesla continues to find solace in Norway, defying a sustained European slump amid a backlash over CEO Elon Musk’s incendiary political rhetoric. The U.S. electric vehicle maker recorded […]

Read More
European stocks open lower with EU tariff letter expected from White House
World

European stocks open lower with EU tariff letter expected from White House

BP flags lower gas, oil sales and impairment of up to $1.5 billion A electric pylon passed behind the BP logo displayed outside a petrol station that also offers electric vehicle recharging in Trowbridge in Somerset, England, on March 15, 2025. Anna Barclay | Getty Images News | Getty Images British oil major BP on […]

Read More
UK economy contracts again in May, missing expectations for slight rebound
World

UK economy contracts again in May, missing expectations for slight rebound

London. Dukas | Universal Images Group | Getty Images The U.K. economy shrank again in May, data showed Friday. The latest monthly growth figures from the Office for National Statistics showed U.K. gross domestic product (GDP) contracted 0.1% month-on-month in May. Analysts polled by Reuters had expected a 0.1% expansion. The latest data follows a […]

Read More