The New Geopolitics of Minerals: Saudi Arabia’s Strategic Pivot
The global scramble for critical minerals has entered a new and urgent phase. As the world pivots toward clean energy, electric vehicles, and advanced technologies, the nations that control the supply of essential minerals like lithium, cobalt, nickel, copper, and rare earth elements will define the 21st-century economy. For decades, global supply chains have been precariously concentrated, with China refining approximately 90% of rare earths, producing 75% of graphite anode materials, and manufacturing nearly 80% of lithium-ion battery cells . This concentration risks significant supply chain shocks .
Amid this shifting landscape, Saudi Arabia is emerging as a pivotal force—one that could meaningfully challenge the status quo. The Kingdom has elevated mining to a core economic pillar under Vision 2030, aiming to diversify its economy away from hydrocarbons . This isn’t just about extraction; it’s about building complete value chains, developing industrial capacity, and securing a strategic position in the global supply network for batteries, renewable infrastructure, and defense systems .
At the heart of this ambition lies the Arabian Shield, a Precambrian geological formation holding significant deposits of copper, gold, zinc, and other critical minerals . The Kingdom is directing substantial capital into exploration, processing, and refining, positioning itself not just as a resource provider but as a central hub for a “super-region” spanning Africa, western Asia, and central Asia . As Paul Simons, a senior fellow at Yale’s Jackson School and former IEA deputy executive director, noted: “Critical minerals are becoming the new currency of global energy security” .
At Darkstone Arabia, we are at the forefront of this national endeavor. Our Mining & Exploration division is actively engaged in copper exploration across the Arabian Shield, and we are helping the Kingdom unlock its mineral wealth to fuel the global energy transition.
The Critical Minerals Supply Chain at a Breaking Point
A Precarious Concentration
The global critical minerals supply chain is bottlenecked and vulnerable to geopolitical risk . The US Geological Survey defines 44 critical minerals and identifies China as the leading worldwide producer of 30 of these . This has left many nations dependent on a single source, exposing structural vulnerabilities .
China’s dominance is most stark in downstream processing. It controls around 70% of global lithium and cobalt processing, approximately 90% of rare-earth refining, and much of the manufacturing capacity for clean-energy technologies . This leverage has been used as a tool of economic coercion, imposing export restrictions on minerals like antimony, gallium, and germanium .
Soaring Demand, Looming Deficits
Demand for critical minerals is rising faster than expected . The IEA projects demand to more than triple by 2035, with deficits of 30% for copper and 40% for lithium by that time . This is driven by the dual forces of the energy transition and rapid digitalization. As Saudi Vice Minister Khalid Al-Mudaifer noted, modern economies depend increasingly on specialized and critical minerals, including rare earth elements, tin, tungsten, tantalum, and gallium—inputs indispensable for electric motors, drones, computers, and digital technologies .
For the Gulf states, this demand creates an opening. They are leveraging their financial capital, geological potential, and geographic location to challenge established players and capture market share .
The Gulf States’ Strategic Response
Saudi Arabia, along with its Gulf neighbors, is articulating a distinct critical minerals strategy designed to secure economic resilience and geopolitical relevance . The Gulf states are investing in integrated supply chains and processing plants to secure strategic raw-material access and capture a larger share of the value chain .
Saudi Arabia’s Integrated Critical Minerals Strategy
Vision 2030: The Third Pillar
Saudi Arabia’s critical minerals strategy is deeply embedded within its broader Vision 2030 . The Kingdom has elevated mining to a core economic pillar, aiming to make it the third pillar of its industrial economy, alongside oil and petrochemicals . The government targets increasing the sector’s contribution to GDP from less than 3% in 2020 to approximately SAR 281 billion (USD 75 billion) annually by 2030. The Kingdom has grown mining’s GDP contribution to SR217.5 billion ($58 billion) in Q3 of 2024, doubling from the 2019 baseline .
Regulatory Transformation and Investment Attraction
Saudi Arabia has made major strides in regulatory reform, creating a world-class investment environment. According to the Fraser Institute’s 2024 Annual Survey, Saudi Arabia has surged from 104th globally in 2013 to 23rd today in mining investment attractiveness . This transformation reflects improved governance, clearer regulations, and a stronger business environment .
Vice Minister Khalid Al-Mudaifer stated: “Saudi Arabia’s mining sector has undergone a profound and unprecedented transformation, moving from the margins of global competitiveness to one of the world’s leading destinations for mining capital” .
Exploration spending has increased fivefold over the past five years, from less than $28 per square kilometer in 2020 to approximately **$144 per square kilometer in 2024** . The number of exploration companies has grown from six to 226, with a majority being foreign bidders .
The Geopolitical Dimension: From Oil to Ores
Saudi Arabia’s critical minerals strategy functions as a geoeconomic tool . By deepening ties with global industrial states and aligning with efforts to diversify supply from dominant producers in East Asia, Riyadh can leverage mineral assets as economic drivers and as bargaining chips in broader strategic dialogues .
The Kingdom is positioning itself as a reliable alternative partner to Western nations and a challenger to China’s critical-minerals dominance . The US-Saudi critical-minerals pact signed in May 2025, which explores joint ventures and investment opportunities, reflects this geopolitical alignment . The Kingdom’s ambition is to be a “global minerals sovereign” .
The Arabian Shield: A Geological Treasure House
World-Class Potential
The Arabian Shield is the foundation of Saudi Arabia’s critical minerals ambitions. It is estimated to hold $2.5 trillion in untapped mineral resources . This Precambrian formation hosts significant deposits of copper, gold, zinc, phosphate, and critical minerals like lithium, cobalt, and nickel .
A US Geological Survey publication notes that the post-orogenic granites of the Arabian Shield are associated with numerous mineral occurrences containing tungsten, molybdenum, tin, beryllium, zirconium, niobium, thorium, uranium, rare earths, and fluorite .
Copper: The Metal of Electrification
The Arabian Shield is highly prospective for porphyry copper deposits, which account for approximately 75% of the world’s copper resources . These deposits are strategically significant, and new research is refining understanding of the tectonic setting and prospectivity of the Shield . The Wadi Bidah Mineral District, for example, hosts world-class Volcanic Massive Sulphide (VMS) deposits, with the Hawiah deposit already containing 38.2 million tonnes of copper, zinc, gold, and silver resources .
Gold and Beyond
Saudi Arabia has tripled its gold output while expanding steel and phosphate production . The Kingdom has 933 active mining and exploration sites, including those holding an estimated 67 million ounces of gold .
AI and Next-Generation Exploration
Advanced technologies, including AI and remote sensing, are now being deployed to enhance exploration of the Arabian Peninsula’s mineral potential . These tools are critical to reducing exploration risk and accelerating discovery in the Shield’s complex geology. Saudi Arabia is positioning itself as a global hub for mining innovation and advanced technologies .
The EV Supply Chain: Saudi Arabia’s Downstream Ambition
Building a Domestic EV Ecosystem
Saudi Arabia’s investments in critical minerals are directly linked to its ambition to build a full domestic EV value chain . The country aims to produce 500,000 EVs annually by 2030 . This will require massive quantities of battery minerals.
Ceer, Saudi Arabia’s first domestic EV brand, has recently signed 16 new commercial agreements worth over SAR 3.7 billion to localize its supply chain . The brand targets localizing 45% of vehicle materials and components by 2034 . At the same time, Lucid Motors is scaling up production at its King Abdullah Economic City facility, and a PIF joint venture with Hyundai is also underway .
Critical Minerals Demand
The EV supply chain is anchored by three critical component pillars: traction batteries, electric motors, and power electronics . Battery supply starts with minerals like lithium, nickel, cobalt, manganese, and graphite, which are processed into battery materials, cells, modules, and packs . Electric motors depend on materials such as copper, electrical steel, and, in some motor types, rare earth magnets .
Saudi Arabia is making faster progress in areas closer to vehicle assembly, such as port connectivity, tyres, and supplier parks. However, battery cell production and advanced electronics are developing in phases, as they require deeper technology and higher capital investment . This creates a direct opportunity for companies like Darkstone to support the development of the upstream supply chain.
Critical Minerals as a National Security Imperative
The combination of surging EV demand and concentrated processing capacity means critical minerals are now viewed as a matter of national security . The IISS notes that the Gulf states view growing investments in critical minerals as vital for their long-term economic security and industrial success . This has spurred investments in domestic lithium-refining capacity and novel extraction techniques .
Darkstone Arabia’s Position: Powering the Critical Minerals Revolution
Proven Capabilities in Arabian Shield Exploration
Darkstone Arabia is uniquely positioned to support Saudi Arabia’s critical minerals strategy. We possess the deep local expertise and proven capabilities required to explore and develop the Arabian Shield’s mineral wealth.
Our Recent Achievements:
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Mansourah-Massarah Gold Mine: We completed the SAR 105 million Tailings Storage Facility (TSF), the largest in Saudi Arabia, for Ma’aden. The 2.5 million square meter project was completed six months ahead of schedule. Mansourah-Massarah is now on track to become Saudi Arabia’s largest gold mine, with expected production of 250,000 ounces of gold annually .
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PHOS-3 Drilling Program: We successfully executed over 25,000 meters of strategic RC and core drilling for Ma’aden, providing critical geological data for this major phosphate project.
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Geological Services: We provide expert geological support across Ma’aden’s exploration and mining sites, including technical services for Wa’ad Al Shamaal Phosphate.
The Full Service Value Chain
Darkstone Arabia offers the full spectrum of services required for critical minerals development:
Exploration & Discovery:
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Comprehensive exploration program management
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RC & DD drilling (over 25,000 meters drilled on PHOS-3)
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Geological studies and resource modeling
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Geotechnical monitoring
Development & Construction:
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Turnkey mine infrastructure (TSF, processing plants, site preparation)
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Earthworks and civil installations
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Mechanical, electrical, and piping (MEP) integration
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Commissioning and handover
Operations & Maintenance:
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24/7 monitoring and predictive maintenance
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Process optimization and continuous improvement
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Safety leadership (5.7+ million LTI-free man-hours)
Our track record speaks for itself: 150+ projects completed within 2 years, 5.7+ million LTI-free man-hours, and a reputation for delivering on time and on budget.
Strategic Partnerships for Critical Mineral Development
Darkstone Arabia has signed a Consortium MoU with Sinoma CDI to collaborate on a major gold plant construction opportunity. This partnership combines complementary strengths in EPC delivery, construction execution, site mobilization, and large-scale industrial project performance. Haytham Ahmad, Darkstone’s CEO, stated that this consortium represents “a strategic step toward transferring engineering expertise and industrial know-how into the Saudi market, creating tangible value for mining clients operating within the Kingdom.”
This partnership demonstrates our ability to deliver the complex, large-scale infrastructure required to process critical minerals—a capability directly aligned with Saudi Arabia’s downstream ambitions.
Conclusion: Saudi Arabia’s Critical Minerals Future
Saudi Arabia stands at a pivotal crossroads. As the world transitions to a low-carbon economy, the Kingdom is positioning itself not merely as a mineral producer but as a central hub in global critical minerals supply chains. The Arabian Shield holds billions in untapped deposits, and the regulatory and investment environment is more attractive than ever. With exploration spending increased fivefold and active mining companies surging, the vision of a fully integrated mining ecosystem—from exploration to processing to manufacturing—is becoming a reality.
At Darkstone Arabia, we are proud to be part of this transformation. Our deep local expertise and proven track record in exploration, drilling, and infrastructure development make us the partner of choice for investors and operators looking to participate in Saudi Arabia’s critical minerals boom.
The critical minerals race is underway. Saudi Arabia is positioned not merely to compete but to lead—and Darkstone Arabia is building the foundation.
Ready to Explore Saudi Arabia’s Critical Mineral Potential?
Contact Darkstone Group’s Mining & Exploration division to discuss how our expertise in copper, gold, and critical mineral development can support your strategic objectives.
Head Office: 13223 King Abdullah Rd., Riyadh, Kingdom of Saudi Arabia
Phone: 11 430 0307
Email: info@darkstone.com.sa
