Saudi Arabia says it holds an estimated $2.5 trillion worth of mineral reserves, a claim that could significantly elevate the kingdom’s role in the global competition for critical and rare earth minerals.
The renewed focus on minerals comes as rare earths return to the geopolitical spotlight, following US President Donald Trump’s announcement of a potential deal involving Greenland that could include access to rare earth resources. These minerals are essential for clean energy technologies, artificial intelligence, electric vehicles, advanced computing and modern military equipment. Currently, China dominates the sector, accounting for more than 90% of global refined rare earth output and over 60% of mining production, according to the International Energy Agency.
Speaking at the Future Minerals Forum in Riyadh, Abigail Hunter, executive director of the Minerals Center at SAFE (Securing America’s Future Energy), said China is “light years ahead” of the United States, citing decades of coordinated state investment, private-sector alignment and overseas expansion.
Saudi Arabia, however, is rapidly expanding its mining ambitions as part of a broader strategy to reduce its dependence on oil and strengthen its geopolitical influence. The kingdom says its mineral wealth includes gold, zinc, copper and lithium, as well as rare earth elements such as dysprosium, terbium, neodymium and praseodymium, which are critical for electric cars, wind turbines and high-performance electronics.
According to S&P Global, Saudi Arabia’s budget for mineral exploration rose by nearly 600% between 2021 and 2025. While still modest compared with established mining nations like Canada and Australia, licensing activity for new mining sites has accelerated, attracting both local and international companies.
Industry experts caution that mining is a long-term endeavor. Hunter noted that building processing facilities can take several years, while full development cycles may stretch into decades. Still, Saudi Arabia is cutting regulatory hurdles, lowering taxes on mining investments and committing significant capital to close the gap with global leaders.
At the Future Minerals Forum, state-owned mining giant Maaden announced plans to invest $110 billion in metals and mining over the next decade. The strategy includes forming international partnerships and attracting global expertise. Maaden CEO Bob Wilt acknowledged the scale of the challenge, saying the company recognizes it cannot achieve its goals alone.
Although the value of Saudi Arabia’s mineral reserves remains far smaller than its vast oil wealth, mining plays a central role in the kingdom’s Vision 2030 plan to diversify the economy. Beyond extraction, the strategy aims to build an end-to-end supply chain that supports domestic industries, including ambitious targets for electric vehicle manufacturing.
Analysts say Saudi Arabia’s growing infrastructure could also position it as a regional hub for refining minerals sourced from other countries, particularly in Africa and the Global South. Hunter said the kingdom’s location and logistics make it well-suited for processing minerals mined elsewhere.
The United States has taken a keen interest in Saudi Arabia’s ambitions. In recent years, the US has sent some of its own rare earth materials to China for refining. But after China tightened export controls on heavy rare earths—many with military applications—Washington has sought alternative processing partners.
During a state visit to Washington last year, Saudi Arabia announced plans to invest nearly $1 trillion in US infrastructure, technology and industry, including cooperation on critical minerals. As part of that effort, US-based MP Materials, backed by the Pentagon, revealed plans to partner with Maaden and the US Department of Defense to build a rare earth refinery in Saudi Arabia.
Experts say the kingdom’s access to abundant, reliable energy gives it an advantage as a processing hub. Melissa Sanderson, co-chair of the Critical Minerals Institute, said Saudi Arabia could leverage the technical expertise of state-owned oil giant Aramco to develop more efficient and potentially cleaner refining methods, challenging China’s cost advantage.
However, environmental concerns remain. Saudi Arabia was among several resource-rich countries that recently opposed elements of a proposed UN resolution aimed at improving supply chain transparency and reducing the environmental damage caused by mining.
Sanderson also pointed to geopolitical risks, including regional instability and complex diplomatic relationships with some mineral-rich African nations. She added that Saudi Arabia may also look to Central Asia, where Aramco already has longstanding ties.
Ultimately, analysts say the kingdom’s push into mining is about more than economics. “This is not about immediate returns,” Sanderson said. “It’s a long-term strategy to build power, influence and strategic relevance in a rapidly changing geopolitical landscape.”
