RIYADH: An Australian metals company is taking a $3 billion punt on harvesting metals in Saudi Arabia that can be used for electric vehicle batteries, Bloomberg has reported.
EV Metals Group will initially build plants to process minerals such as lithium and nickel, but will later expand into exploring for battery metals, managing director and CEO Michael Naylor said.
It would be one of the first major deals since Saudi Arabia passed a law to attract investments in mining as it looks to diversify its oil-dominated economy, he added.
If the company succeeds, it will be the first to explore the prospects for minerals in the Kingdom.
The rush to mine these raw materials, as the world searches for cleaner transportation with the energy transition, has boosted demand and prices, according to Bloomberg.
London nickel is up 82 percent in the past five years, and has jumped 16 percent in 2021 amid a broader commodity rally, while lithium carbonate prices in China have reached record levels.
