RIYADH, Saudi Arabia – The Gulf kingdom’s wealth and power depend largely on its vast oil reserves, and Saudi Arabia’s energy minister believes oil is no longer an energy security challenge.

Instead, he said, the coming battle will be against an entirely different material buried underground: critical minerals.

Saudi Energy Minister Abdulaziz bin Salman told attendees at the annual Future Minerals Forum in Riyadh: “Oil is no longer the challenge for energy security, it’s gas, electricity and mainly minerals. “

“Today, some of these countries, as a nation, have 50% ownership of some of these needed minerals and critical minerals… Countries are racing to acquire critical minerals and secure their own supply chains. Resources will ultimately lead to higher emissions, more High metal costs and higher energy prices.”

The energy minister was referring to minerals critical to the energy transition and advanced technologies, including lithium, cobalt, nickel, graphite, manganese and other rare earth elements that are essential in making electric vehicles, batteries, renewable energy technologies, computers and household products etc. are crucial.

China currently controls about 60% of global production of rare earth minerals and materials. According to a recent report Baker Institute for Public Policy, Rice University. This has attracted the attention of many countries, especially Western countries, as these resources have become increasingly important to national security and economic stability.

“More artificial intelligence and data centers mean more energy,” bin Salman said. “You’re going to have artificial intelligence, data centers, mining, crypto mining… can you imagine what’s going to happen with energy demand? Can you imagine the competition between mining creating energy and energy creating mining and the growth of these economies?” Energy Secretary asked.

“I really didn’t like the idea of ​​being energy secretary at that time.”

Surges in electricity demand around the world are being driven by growing demand for artificial intelligence, factories, electric vehicles and data centers required for hotter, longer summers. A recent Department of Energy memo cited in numerous media reports predicts that the U.S. grid could require as much as 25 gigawatts of new data centers by 2030.

Critical minerals and rare earth metals are also crucial for renewable technologies such as solar panels and wind turbines, which are at the heart of many countries’ energy transition efforts away from fossil fuels. China extracts 95% of the world’s manganese – a chemical element used in batteries and steelmaking – although less than 10% of its global supply is mined.

Saudi Arabia announced on Wednesday Committed to $100 billion in mining investment Because it aims to become a global center for mining and mineral extraction and processing. The country plans to significantly expand exploration of lithium and other key minerals within its borders.

Revitalizing the mining sector and investing in domestic supply chains is part of Saudi Arabia’s Vision 2030 mission to diversify the economy away from oil.