Saudi Arabia Sees Lithium Investment Options in Chile

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayaf speaks during an interview with Reuters, in Santiago, Chile, July 29, 2024. REUTERS/Pablo Sanhueza Purchase Licensing Rights
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayaf speaks during an interview with Reuters, in Santiago, Chile, July 29, 2024. REUTERS/Pablo Sanhueza Purchase Licensing Rights
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Saudi Arabia Sees Lithium Investment Options in Chile

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayaf speaks during an interview with Reuters, in Santiago, Chile, July 29, 2024. REUTERS/Pablo Sanhueza Purchase Licensing Rights
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayaf speaks during an interview with Reuters, in Santiago, Chile, July 29, 2024. REUTERS/Pablo Sanhueza Purchase Licensing Rights

Saudi Arabia's Manara Minerals is looking at opportunities to invest in lithium production in Chile, mining minister Bandar Alkhorayaf said on Monday during a visit to the South American country.

Manara, a joint venture between state-owned miner Ma'aden and the Public Investment Fund (PIF), is "analyzing the different options," Alkhorayaf said in an interview, Reuters reported.

Alkhorayaf, the Saudi Minister of Industry and Mineral Resources, said Manara had interest in Chile, the world's second-largest producer of the battery metal.

"I think we can see something happening with Manara on the Chilean assets here. It makes a lot of sense," he said, adding that he saw "great commitment" from the Chilean government to help secure investment.

He noted that he was not aware of specific discussions underway. Chile's state-run miner Codelco is currently seeking a partner for a major lithium project in the Maricunga salt flat, and the government recently opened a number of other lithium deposits to private investment.

Alkhorayaf as well as Manara CEO Pierre Chenard participated in meetings on Monday with Chile's mining ministry in which Codelco participated.

Alkhorayaf added that Saudi Arabia is interested in quickly securing supply of lithium, including from Chile, as it aims to produce EV batteries domestically.

"We have a leadership that's very ambitious," he said. "We are serious to source it now ... as soon as possible."

In a meeting with his Chilean counterpart Aurora Williams, the two discussed the minerals supply chain, water supply issues and lithium, according to Chile's mining ministry. Alkhorayaf also proposed setting up a group between both governments to explore possible collaboration, the ministry said in a statement.



China Eyes 5 Percent Growth despite Trade War

China's President Xi Jinping arrives for the opening session of the National People's Congress (NPC) on Wednesday. Pedro Pardo / AFP
China's President Xi Jinping arrives for the opening session of the National People's Congress (NPC) on Wednesday. Pedro Pardo / AFP
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China Eyes 5 Percent Growth despite Trade War

China's President Xi Jinping arrives for the opening session of the National People's Congress (NPC) on Wednesday. Pedro Pardo / AFP
China's President Xi Jinping arrives for the opening session of the National People's Congress (NPC) on Wednesday. Pedro Pardo / AFP

China on Wednesday set an annual growth target of around five percent, vowing to make domestic demand its main economic driver as an escalating trade war with the United States hit Beijing's exports.

Beijing also announced a rare hike in fiscal funding, allowing its budget deficit to reach four percent this year as it battles stuttering employment for young people, stubbornly low consumer demand and a persistent property sector debt crisis, reported AFP.

The headline growth figure announced by Premier Li Qiang at an annual Communist Party conclave was broadly in line with an AFP survey of analysts, though experts say it is ambitious considering the scale of the country's economic challenges.

Under the plans, some 12 million new jobs will be created in Chinese cities as Beijing pushes for two percent inflation this year.

A government work report vowed to make domestic demand the "main engine and anchor" of growth, adding that Beijing should "move faster to address inadequate domestic demand, particularly insufficient consumption".

And in a rare move, Li said China would hike its fiscal deficit by one percentage point, something that analysts have said will give Beijing more latitude to tackle its economic slowdown.

Dylan Loh, an assistant professor at Singapore's Nanyang Technological University, said Beijing's growth target would be "tough but possible".

He said low consumption was a "confidence issue", adding that "if people are, in their own calculations, worried about spending -- especially on big-ticket items -- it is far harder to address".

Major Asian markets traded up on Wednesday, reversing their losses a day after US President Donald Trump went ahead with imposing more blanket tariffs on Chinese imports following a similar move last month.

US tariffs are expected to hit hundreds of billions of dollars in total trade between the world's two largest economies.

"Internationally, changes unseen in a century are unfolding across the world at a faster pace," the government work report said.

"Unilateralism and protectionism are on the rise," it warned.

And "domestically, the foundation for China's sustained economic recovery and growth is not strong enough," added the report.

Fight to the 'bitter end'

Chinese exports reached record levels last year.

But as thousands of delegates congregated in Beijing's opulent Great Hall of the People for the opening session of the National People's Congress, the second of China's "Two Sessions" political meetings this week, sentiments were clouded by a broadening trade war under Trump.

Beijing on Tuesday announced its own measures in retaliation for Washington's latest tariff hike -- and vowed it would fight a trade war to the "bitter end".

The moves will see China impose levies of up to 15 percent on a range of US agricultural products including soybeans, pork and wheat starting from early next week.

Beijing's countermeasures represent a "relatively muted response" in comparison to Trump's all-encompassing tariffs, wrote Lynn Song, chief economist for Greater China at ING.

"The retaliation could have been a lot stronger, and with every further escalation the risks are also rising for a stronger response," he added.

Analysts say authorities may announce further plans this week to boost the economy -- adding to a string of aggressive support measures announced late last year.

More help needed

Also on Wednesday, China disclosed a 7.2 percent rise in defense spending in 2025, as Beijing rapidly modernizes its armed forces in the face of regional tensions and strategic competition with the US.

Geopolitical tensions between Beijing and Washington are set to intensify this year, analysts say.

The status of self-governed Taiwan -- claimed by China as part of its sovereign territory -- is chief among the sources of friction.

The defense spending will finance Beijing's frequent dispatches of military aircraft around Taiwan, intended to put pressure on authorities in the democratic island.

It also came after Trump proposed a coordinated halving of the military budgets of the United States, Russia and China.

China has not agreed to such a move, with a foreign ministry spokesperson suggesting last month that any reductions in military expenditure should be conducted by Washington first.