The Gulf states, particularly Saudi Arabia and the UAE, are rapidly accelerating their involvement in the critical minerals market, leveraging their financial capital, existing mineral resources, and strategic geographic location. This push, reported today, July 31, 2025, comes as global demand for critical minerals like lithium, cobalt, copper, nickel, and rare-earth elements soars due to the expanding electric vehicle (EV) and renewable energy sectors. Anticipating deficits, such as a projected 30% for copper and 40% for lithium by 2035, Gulf nations are investing heavily in both overseas acquisitions and domestic initiatives.
Examples include Saudi Arabia's planned midstream hub for high-purity chemicals in Yanbu Industrial City, a joint venture with EV Metals Group, and the country's $2.5 billion stake in Vale for global copper, iron-ore, lithium, and nickel projects. The UAE is establishing an EV assembly plant in Abu Dhabi with NWTN and investing in a $1.4 billion lithium-processing facility. Oman has attracted a $1.1 billion Chinese investment for a lithium-ion battery materials plant, while Qatar's sovereign wealth fund has invested in a US-based recycled lithium-ion battery materials company. These strategic moves aim to diversify supply chains and cement the Gulf's geopolitical leverage in a post-oil economy.
