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The United States and Saudi Arabia are negotiating to secure rare earth metals.

The frantic race for rare metals is intensifying. The Wall Street Journal reports that the United States and Saudi Arabia are in talks to secure the supply of rare metals crucial for their respective energy transitions.


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It's hardly surprising that these two nations are seeking to benefit independently from this agreement. On one hand, Washington is trying to curb China's dominance in this sector, while Saudi Arabia, as the world's leading oil exporter, aims to further diversify its economy.



Saudi Arabia: A Mediator for the United States in the Rare Metals Race


As part of their agreement to secure the supply of rare metals, the United States could rely on Saudi Arabia as an intermediary. The Saudi kingdom could invest in African mines and resell the production to American companies.

This strategy offers several advantages for the United States. It would allow them to avoid direct involvement in countries with questionable social and economic policies. Indeed, the majority of essential minerals for the "green" transition are found in African countries where corruption is rampant.

Saudi Arabia is a country with fewer environmental and social constraints. Therefore, it is more likely to invest in mines that could have a negative impact on the environment and local populations.

Negotiations between the United States and Saudi Arabia are ongoing, but they could lead to an agreement that secures the supply of rare metals for both countries.



Rare Metals: Economic Diversification for Riyadh


Riyadh is aiming to diversify its economy by investing in various sectors, and this potential agreement with the United States aligns with that goal. Over the past several months, Saudi Arabia has made significant investments in areas related to the energy transition and is now showing interest in the mining sector. For instance, the Saudi state-owned mining company, Ma'aden, is planning to sign a $2.6 billion agreement with Brazil's largest mining corporation by 2024, as reported by Carbon Credits.

Among the numerous ongoing projects in Saudi Arabia, the Wall Street Journal mentions the establishment of a domestic electric vehicle industry, as well as investments in cutting-edge technologies and artificial intelligence.



In conclusion, the frantic race for rare metals is accelerating, with the United States and Saudi Arabia in negotiations to secure their supply of these crucial resources for their respective energy transitions. This potential partnership between two major global players underscores the growing importance of rare metals in the global economy and their critical role in the transition to more sustainable energy sources. For savvy investors seeking opportunities in this burgeoning field, Elio Strategy stands as the ideal partner to explore the lucrative potential of rare earths while contributing to shaping a cleaner and more promising energy future. Request your brochure at www.eliostrategy.com/brochure.

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