Saudi Arabia is betting on EV batteries. That should put the world on high alert..
It’s almost too late for the US and parts of Europe to catch up..
Apart from China, no country has managed to achieve manufacturing scale. .
That may be about to change..
Saudi Arabia wants to go electric. It's getting its hands on minerals critical for batteries and taking a stake in the EV-supply chain..
As shortages loom, Saudi Arabia has drawn in lithium miners and battery makers to set up operations, filling a critical gap. .
The country wants 30% of cars on its capital city’s roads to be electric by the end of this decade .
Saudi Arabia’s Ministry of Industry and Mineral Resources has announced $6 billion of projects as part of a larger push to boost its mining industry..
It’s also processing almost 150 exploration license applications from foreign companies.
The government signed an agreement to buy as many as 100,000 electric vehicles over 10 years from an EV maker that the country’s sovereign wealth fund has a stake in.
It's allocating over $3 billion to set up the plant over the next decade .
Creating manufacturing and processing facilities within Saudi Arabia's borders is a prescient move.
It will eventually help bring down the costs and ensure the nation becomes a key part of the global electric vehicle-value chain.
Saudi Arabia's geographical position allows it to supply Europe and get resources from China and Australia. .
The kingdom has assessed and issued mining licenses to tap into its mineral resources, with an estimated potential value of $1.3 trillion .
Saudi Arabia could develop its own resources, too:.
The lithium in the salty brine byproduct around its oil fields is becoming a key source for the metal as a supply deficit widens .
Saudi Arabia could develop its own resources, too: .
The lithium in the salty brine byproduct around its oil fields is becoming a key source for the metal as a supply deficit widens .
·Saudi Arabia’s advance into battery materials — as shortages raise costs and companies’ battle tightening green regulations to get ahead — is turning what stands to be a huge threat to its economy into a long-term benefit .