The Wall Street Journal reported on Sunday, citing sources with knowledge of the discussions, that the United States and Saudi Arabia are in discussions to grab metals in Africa that they need to assist them with their energy transitions.
US and Saudi Arabia in talks to secure metals: According to the article, a state-backed Saudi enterprise would purchase stakes in $15 billion worth of mining assets in African nations like the Democratic Republic of the Congo, Guinea, and Namibia, granting U.S. businesses the opportunity to purchase some of the production.
For supply of cobalt, lithium, and other metals used in electric car batteries, laptops, and cellphones, the U.S. is racing China.
Saudi Arabian Mining Co (Ma’aden) and the Saudi Public Investment Fund (PIF) acquired 10% of Brazilian Vale’s base metal unit in a similar deal in July, while American investment group Engine No. 1 acquired 3%.
The newspaper reported that the PIF contacted Congo in June about putting $3 billion of its joint venture with Ma’aden, Manara Minerals, into the country’s cobalt, copper, and tantalum industries.
Manara is also concentrating on nickel, lithium, and iron ore.
The White House is looking for financial support from other sovereign wealth funds in the area, but according to the Journal, negotiations with Saudi Arabia have advanced the most.
However, The White House and the Saudi authorities did not immediately answer a request for response.