UK to sign critical minerals partnership with Saudi Arabia

Industry Minister Sarah Jones will sign the deal as part of her visit to the Future Minerals Forum in Riyadh

The Sigma Lithium plant in Brazil. Lithium is a critical mineral, essential in the manufacture of smartphones and other modern electronics. AFP

The UK will sign a new partnership deal on critical minerals with Saudi Arabia this week, as part of a British ministerial visit to the Future Minerals Forum in Riyadh.

UK Industry Minister Sarah Jones is leading a trade mission of 16 British critical minerals companies, including Cornish Lithium and Beowulf Mining to the Forum, where they will show their skills and expertise at the UK Pavilion.

Critical minerals, like lithium, cobalt and manganese, are essential in the manufacture of smartphones, laptops and many modern appliances. They are also necessary in industries like artificial intelligence (AI) and clean energy, which are considered to be at the forefront of the UK's future economic growth.

“Critical minerals are increasingly vital to our economy as we turbocharge AI, clean energy and new technologies,” Ms Jones said. “In the global race for economic growth, and in an increasingly uncertain world, the UK must secure supplies of these critical minerals.

“That’s why this government is developing a Critical Minerals Strategy. And it’s why we are forging new partnerships with our allies like Saudi Arabia to secure our minerals supply chains for the long term.”

Free-trade agreement

The partnership deal seeks to strengthen UK co-operation with Saudi Arabia in developing secure critical minerals supply chains, as well as attracting Saudi investment into the UK. A secure supply of critical minerals will play a key role in delivering the UK government’s Industrial Strategy, which is due to be published this year. Many of the strategy's growth areas, like advanced manufacturing and clean energy, rely on building products like electric vehicles and wind turbines, both of which require a steady supply of critical minerals.

Critical minerals are also essential for the development of the data centres needed to build AI systems. British Prime Minister Keir Starmer emphasised the importance of AI to UK economic growth when he unveiled the government's plan to make Britain an “AI superpower” on Monday.

While in Riyadh, Ms Jones will hold a bilateral meeting with Saudi Arabia’s Industry and Mineral Resources Minister Bandar Alkhorayef, and take part in a ministerial round-table with key players from across the sector, before signing the preliminary agreements.

The ministerial visit comes as the UK and the Gulf Co-operation Council (GCC) states are on the cusp of a free-trade agreement (FTA). Trade with the six countries of the GCC, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE, is already worth £57 billion. It is estimated that an FTA would add an extra £8.6 billion a year to trade in the long run.