Saudi Arabia’s Energy Minister highlights the shift towards critical minerals for energy security
Riyadh: Saudi Arabia’s Energy Minister, Abdulaziz bin Salman, recently made a big statement. He said oil isn’t the main focus for energy security anymore. At the Future Minerals Forum, he pointed out that gas, electricity, and minerals are now taking center stage.
He talked about the global race for critical minerals like lithium, cobalt, and nickel. These are super important for electric vehicles and renewable energy. For example, the VanEck Rare Earth/Strategic Metals ETF has already jumped 8.1% this year.
These minerals are crucial for making batteries and modern electronics. Some countries own a huge chunk of these resources, which is creating fierce competition. Right now, China controls about 60% of the world’s rare earth minerals production.
This situation has Western nations worried since these minerals are tied to national security. The minister cautioned that the scramble for these resources could lead to higher emissions and energy prices. ETFs like SPDR S&P Metals & Mining might see a boost from this trend.
Emerging technologies like AI and crypto mining are driving up electricity demand. The U.S. power grid could see an extra 25 gigawatts of demand from data centers by 2030, which is a lot!
To tackle the critical minerals issue, Saudi Arabia is investing $100 billion to grow its mining sector. They want to become a global leader in mining and mineral processing, focusing on lithium and other key minerals.
This initiative is part of Saudi Arabia’s Vision 2030 plan to diversify its economy and reduce its oil dependency. It’s also shining a light on ETFs like Global X Lithium & Battery Tech.
