The United States and Saudi Arabia are in discussions aimed at acquiring essential metals from Africa to facilitate their transition towards alternative energy sources. This information is sourced from a Sunday report in The Wall Street Journal, citing individuals knowledgeable about these developments.
According to the report, a Saudi state-backed enterprise is planning to acquire stakes in mining assets valued at $15 billion in African nations such as the Democratic Republic of the Congo, Guinea, and Namibia. This move would enable U.S. businesses to access a portion of the resulting production.
The race to secure supplies of metals like cobalt, lithium, and others, which are crucial for electric car batteries, laptops, and cellphones, is ongoing, with the U.S. vying against China.
In a similar deal, Saudi Arabian Mining Co (Ma’aden) and the Saudi Public Investment Fund (PIF) purchased a 10 percent stake in Brazilian Vale’s base metal unit in July, while the American investment group Engine No. 1 acquired 3 percent.
The newspaper also reported that in June, the PIF reached out to Congo regarding the possibility of investing $3 billion from its joint venture with Ma’aden, known as Manara Minerals, into the cobalt, copper, and tantalum industries in the country. Manara Minerals is also focusing on nickel, lithium, and iron ore.
The White House is seeking financial support from other sovereign wealth funds in the region, but as per the Journal’s report, negotiations with Saudi Arabia have progressed the furthest.
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