Peru Backs Saudi Arabia’s Rise as a Global Critical Minerals Hub

Saudi Arabia

US-led strategy to diversify global refining draws international support

Peru has expressed strong support for Saudi Arabia’s growing role in the global critical minerals industry, aligning with US efforts to reduce dependence on China. Speaking at the Munich Security Conference, Peru’s Foreign Minister Elmer Schialer called the US policy a "good strategy" to counter mineral supply monopolies and lower global processing costs.

The US has backed Saudi Arabia's ambitions to build a diversified critical minerals refining and processing hub. This aligns with broader Western goals to create alternatives to China, which currently controls around 90% of global mineral processing capacity.

Saudi Arabia boosts global capacity with Vision 2030 investments

Saudi Arabia’s Vision 2030 aims to reduce the kingdom’s dependence on oil by investing in strategic sectors, including mining and electric vehicles. In January, Riyadh announced a new $100 billion mineral investment plan, with $20 billion already in advanced development stages.

The Ministry of Industry and Mineral Resources also upgraded the estimated value of Saudi Arabia’s unexploited mineral reserves from $1.3 trillion to $2.5 trillion. These reserves include high-demand resources like copper, gold, bauxite, potash, and rare earths—key materials for clean energy and defense technologies.

Global alliances forming amid China’s tightening controls

China has tightened its export restrictions on critical mineral processing technologies, especially following trade tensions with the US. In response, countries like Saudi Arabia are being courted by Western governments to build alternative supply chains.

Peru’s endorsement of Saudi Arabia’s mineral ambitions reflects growing support for a multipolar critical minerals market. Schialer emphasized that having multiple global centers for mineral refining would lower production costs and improve economic resilience.

Saudi Aramco and Ma'aden, the kingdom’s state-controlled mining firm, also launched a joint venture to explore and extract energy transition minerals. These steps position Saudi Arabia as a potential key player in the future of global mineral security.