Saudi Arabia's Manara Minerals is exploring investment opportunities in lithium production in Chile, Saudi mining minister Bandar Alkhorayaf announced on Monday during a visit to the South American country. Manara, a joint venture between state-owned miner Ma'aden and the Public Investment Fund (PIF), is currently “analyzing the different options,” Alkhorayaf said in an interview.
As part of its strategy to diversify its oil-dependent economy, Saudi Arabia is seeking access to lithium and other minerals to become a hub for battery and electric vehicle (EV) manufacturing. Alkhorayaf emphasized Manara's interest in Chile, the world's second-largest producer of lithium, stating, “I think we can see something happening with Manara on the Chilean assets here. It makes a lot of sense.”
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He praised the Chilean government's commitment to facilitating investment but noted that he was not aware of specific discussions underway. Chile's state-run miner Codelco is currently seeking a partner for a major lithium project in the Maricunga salt flat, and the government has recently opened other lithium deposits to private investment.
During his visit, Alkhorayaf, along with Manara CEO Pierre Chenard, participated in meetings with Chile's mining ministry, including representatives from Codelco. Alkhorayaf was also scheduled to meet with Codelco Chairman Maximo Pacheco, as well as executives from mining companies SQM, Antofagasta, and CAP. However, Pacheco was traveling with Chilean President Gabriel Boric in the United Arab Emirates on a trip aimed at increasing investment between the two countries.
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Alkhorayaf emphasized Saudi Arabia's urgency in securing a lithium supply to support domestic EV battery production. “We have a leadership that's very ambitious,” he said. “We are serious to source it now … as soon as possible.”
In a meeting with his Chilean counterpart Aurora Williams, the two ministers discussed the minerals supply chain, water supply issues, and lithium. According to Chile's mining ministry, Alkhorayaf proposed establishing a joint group between both governments to explore potential collaboration.
