Saudi Arabia is making a determined effort to become a significant player in the global mineral supply chain, driven by its Vision 2030 strategy to diversify its economy and reduce its dependence on oil exports. The Kingdom is seeking to strengthen its local processing and industrial value-added sectors, and is actively seeking international partners to help achieve this goal.

A Questionable Pillar of Europe’s Diversification Strategy

While Saudi Arabia’s efforts to develop its mineral resources sector are ambitious, there are concerns about the Kingdom’s governance and human rights standards, which could impact the operational efficiency of the sector and pose risks for European companies. The dominance of the Public Investment Fund (PIF) in the sector raises concerns about state control and the potential for supply relationships to be co-opted for foreign policy objectives.

Saudi Arabia’s Diplomatic Efforts

Saudi Arabia is seeking to position itself as a geopolitically neutral partner and “link” in supply chains, leveraging its financial strength and location advantages to attract international companies. The Kingdom is deepening its relationship with China, while also strengthening its ties with the US and other Western nations. Saudi Arabia is also engaging with resource-rich countries in Africa and Latin America to secure stakes in mining projects.

Challenges and Delays

Despite its ambitious plans, Saudi Arabia faces significant challenges and delays in developing its mining sector. The Kingdom’s geological data are lacking, and it relies heavily on foreign expertise and investment for exploration and new mining projects. The employment potential in the mining sector is limited, and the Kingdom is actively seeking international partners to develop its steel industry and other downstream supply chains.

The Role of the Public Investment Fund

The PIF plays a crucial role in financing Saudi Arabia’s efforts to develop its mineral resources sector and downstream industries. The fund’s extensive financial involvement gives the state considerable control over the sector, and its investment decisions are often driven by a clientelist template that favors well-established economic elites with close ties to the Saudi royal family.

Recommendations for Targeted Cooperation

While a strategic raw material partnership with Saudi Arabia is not currently advisable due to concerns about governance and human rights standards, targeted, selective cooperation should be pursued. The EU, alongside MSP partners such as the US and the UK, could intensify dialogue with Saudi Arabia on governance and standards setting, and encourage its involvement in international frameworks such as the Extractive Industries Transparency Initiative (EITI). European companies are expected to become increasingly involved in Saudi Arabian supply chains, and German support for the private sector should be stepped up to provide expertise and advice on the opportunities and risks of cooperating with the Saudi raw minerals sector.

The International Mineralogical Society (IMA) recently announced the decision to name the mineral after Kanatzidis, acknowledging his pioneering contributions to chalcogenide chemistry. Kanatzidis expressed his appreciation for the honor, saying, “I am deeply honored to have a new mineral named after me, kanatzidisite, symbolizing the remarkable diversity and wonders of the Earth’s geological treasures.”

Chalcogenides, like kanatzidisite, are compounds made up of chalcogen elements (such as sulfur, selenium, or tellurium) combined with metallic elements. These minerals can vary in color and opacity, depending on their chemical composition, and differ notably from common silica glass.

Kanatzidis is renowned for his groundbreaking research in metal chalcogenide chemistry and for developing innovative chalcogenide materials. His work has enabled advancements in solar cells, X-ray and gamma-ray detectors, topological quantum materials, and thermoelectric technologies. A graduate of Aristotle University of Thessaloniki, Kanatzidis is now the Charles E. and Emma H. Morrison Professor of Chemistry at Northwestern.

Reflecting on his legacy, Kanatzidis hopes that kanatzidisite will inspire future generations of scientists to explore further into geological mysteries and develop new, extraordinary minerals. He remarked, “I guess I can now proudly claim that I have a ‘rock-solid’ legacy in the field of geology!”

In recognition of his work, Kanatzidis received the 2023 Centenary Prize for his pioneering research on semiconducting halide perovskites, used in solar energy conversion. His research continues to push the boundaries of exploratory synthesis and materials discovery, advancing fields critical to sustainable energy and cutting-edge technology.

Steel associations cited the industry’s struggles, noting that global overcapacity reached 551 million tons last year—four times the EU’s annual steel output. With China producing nearly half the world’s steel, flooding global markets with cheap steel, European producers face declining revenues, job losses, and environmental concerns. MEP Juan Ignacio Zoido Alvarez highlighted China’s rapid growth in steel production, up by 600% over 20 years, with further increases anticipated by 2026.

Further issues included high energy prices, weaknesses in the Carbon Border Adjustment Mechanism (CBAM), and ineffective trade defense. European Commissioner Helena Dalli noted that Europe, responsible for just 7% of global production, faces declining output and a steel trade deficit. She urged investments in green steel projects to regain global competitiveness and stressed the need for affordable energy and protection from cheap imports.

Steelmakers and EU leaders discussed an action plan, proposing reduced imports, stronger trade safeguards, and enhanced energy supply stability. President Ursula von der Leyen announced a new Clean Industrial Deal aimed at supporting industries like steel in their green transitions.

Meanwhile, the Ukrainian steel industry struggles amidst war-related challenges, including plant destruction, export losses, and high energy costs. CBAM poses additional hurdles for Ukraine, which exports 93% of its steel to the EU. Ukrainian officials urge relaxed CBAM terms, citing potential export losses up to $4.6 billion by 2030.

Industry experts argue that harmonized EU and Ukrainian policies are essential to shield European steel from low-cost imports and sustain critical industry sectors across the region.

While lithium is essential for the EU’s green transition, experts are increasingly voicing concerns over the ecological impacts of mining. These include potential water pollution, biodiversity loss, and the increased carbon emissions that could accompany intensified mining operations. The question now being asked is: can Europe truly meet its ambitious climate goals without causing significant harm to its environment?

In this episode, host Giada Santana delves into these complexities with Energy and Environment reporter Nathan Canas. They explore the broader implications of Europe’s lithium boom, the environmental challenges it poses, and whether sustainable mining practices can be scaled to meet the EU’s ambitious climate targets.

Join us for a nuanced discussion on Europe’s path toward sustainability and the difficult choices it faces as it navigates the green transition.

At a conference hosted by the Swedish Chamber of Commerce in the UK, Pourmokhtari addressed the financial struggles of Northvolt, Sweden’s leading battery manufacturer, which aims to compete with industry giants like CATL and Tesla. Pourmokhtari made it clear that public financial support for Northvolt was off the table, arguing that private capital is sufficient to sustain the company.

In an interview after the event, Pourmokhtari emphasized Sweden’s global contribution to reducing emissions through the export of clean technology. She mentioned her recent inquiry into how much of a carbon sink Sweden could create by exporting goods and services that lower emissions worldwide. This move, however, risks backlash from environmentalists who question whether Sweden is doing enough domestically.

These minerals are crucial for the growing green economy, particularly in the production of digital technologies and advanced manufacturing. The initiative is part of a larger £25 million investment by UKRI to set up five new green industry centres across the country.

The UKRI projects that up to 3,000 jobs could be created in Devon and Cornwall through the mining of these materials, as global demand for lithium alone is expected to increase significantly. The International Energy Agency estimates that up to 40 times more lithium will be required by 2040 to meet the demands of the energy transition.

Frances Wall, the lead investigator for the Green Economy Centre at Exeter, described the investment as a “wonderful opportunity” to support the region’s critical mineral businesses. The centre will work closely with industry partners such as Cornwall Resources Limited, Petrolab, and Geolorn, along with local government bodies, to drive innovation and economic growth.