Saudi Arabia is accelerating plans to become a critical-minerals processing hub, with estimated mineral resources of about €2.23 trillion, S&P Global reported. The strategy could give Europe a refined-material supplier closer than East Asia, while increasing competition for the copper, lithium, nickel and rare-earth feedstock European manufacturers are seeking.
The kingdom is using low-cost energy, state-backed capital and its location between Europe, Asia and Africa to attract smelters, refineries, battery-material projects and electric-vehicle manufacturing. Under Vision 2030, Saudi Arabia aims to raise mining’s contribution to gross domestic product, create jobs and bring new investment into the sector by the end of the decade.
Saudi Arabia’s targets include mining contributing roughly €57 billion to gross domestic product, creating 200,000 jobs and attracting around €24 billion in new mining-sector investment. Minesite exploration budgets reached about €130 million in 2025, almost seven times their 2022 level, according to S&P Global.
Gold accounted for 72% of the 2025 minesite exploration budget and copper for 23%. The near-term exploration drive is therefore concentrated on conventional metals, particularly gold and copper, even as the kingdom expands into battery-material and rare-earth supply chains.
Smelting and refining projects
Planned downstream projects include a copper smelter and refinery by Vedanta Copper International, valued at roughly €1.78 billion. Zijin Mining has committed up to around €1.42 billion for projects involving zinc smelting, lithium extraction and copper refining in Saudi Arabia.
Australia’s Hastings Technology Metals is working with Saudi Arabia’s Ministry of Investment on a multiphase rare-earth processing project valued at up to about €1.69 billion. Saudi Aramco and Maaden have also announced a joint venture valued at roughly €1.78 billion to pursue lithium extraction from brines and direct-lithium-extraction technology.
Commercial production from the Saudi Aramco–Maaden venture had previously been targeted from 2027, subject to technical and economic conditions. The broader strategy is to secure mineral feedstock, process it domestically and create demand through industrial projects, battery materials and vehicle manufacturing.
European cooperation and execution risks
The planned ecosystem could form a vertically linked metals platform supported by sovereign capital, ports, industrial zones and energy infrastructure. An EU–Saudi business and investment dialogue on critical raw materials was held in Riyadh in January 2026, reflecting interest in closer cooperation across raw-material value chains.
Europe is seeking diversified processing capacity, while Saudi Arabia wants technology, investment, customers and integration into international markets. The kingdom could offer Europe a geographically closer source of refined materials, but may also compete with European projects for processing investment and for copper, lithium, nickel and rare-earth feedstock.
Potential obstacles include water scarcity, underexplored geology, workforce requirements, regional shipping disruptions and governance expectations, which could delay projects or raise costs. The announced investments still need to progress through permitting, construction and commissioning before they can materially change supply.
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