Saudi Arabia’s Minister of Industry and Mineral Resources, Bandar Alkhorayef, and the United Kingdom’s Secretary of State for Business, Energy and Industrial Strategy, Kemi Badenoch, signed an agreement May 25 that will see the U.K. and Saudi Arabia jointly develop critical minerals supply chains to support the global transition to more environmentally-friendly energy production efforts. The deal will focus on improving the supply chain resilience of key minerals like copper, lithium, cobalt and rare Earth elements, all of which are vital to the production of electric vehicles and solar panels.

The agreement will open up new opportunities for U.K. mining firms to do business in Saudi Arabia. Moreover, the partnership will enable the two countries to share critical minerals strategies, establish forums to support the flow of essential minerals, and work with members of the private sector to identify new critical minerals supply chains.

Alkhorayef explained that lithium supplies will need to increase by roughly 700%, nickel production by almost 100% and copper production by about 50% from 2020 to 2030 when compared to the period of 2010 to 2020 in order to meet climate change goals. He also said that the declaration of intent to work together will diversify the supply chains of critical minerals across numerous industries.

“Saudi Arabia and the United Kingdom share a common vision of ensuring the availability of minerals necessary for the energy transition while upholding high sustainability standards,” Alkhorayef told the Saudi Press Agency according to Alarabiya News.

The critical minerals supply chain deal was established following an agreement signed by the U.K. government in January 2023 promising the country would work on more collaborations with Saudi Arabia to diversify critical minerals sources. According to the Chartered Institute of Procurement & Supply (CIPS), the deal is also part of a plan by Badenoch to advance the U.K.-Gulf Cooperation Council Free Trade Agreement, a partnership formed between the U.K. and the GCC that expects to increase trade by at least 16% in the United Kingdom while adding at least £1.6 billion a year to the U.K. economy.