When we hear about a mineral discovery, we might think its importance lies in the quantities that can be extracted and sold. But what if the greatest value comes not from extracting the mineral itself, but from turning it into a material used in cars, batteries, and modern technologies?

This question highlights an important aspect of Saudi Arabia’s ambitions in the mining sector. The goal is no longer limited to discovering mineral wealth; it also extends to developing related industries and using them to build a more diversified economy.

Why isn’t extracting minerals enough?

A mineral’s journey begins with exploration and mining, but it doesn’t end when it is extracted from the ground. Further stages include processing the ore, separating the desired minerals, refining them, and turning them into materials that can be used across various industries.

Together, these stages are known as the value chain—all the steps a resource goes through before becoming a product with greater economic value.

Lithium, for example, matters not only because it occurs naturally, but also because it is used to produce materials needed for batteries. The more stages of this chain a country can develop within its own economy, the greater its opportunity to capture added value and develop local industries linked to the resource.

Saudi Arabia and Australia: a partnership that goes beyond mineral extraction

Saudi Arabia estimates the value of its mineral wealth at around two and a half trillion dollars and is working to develop the mining sector into a key pillar of economic diversification, alongside oil and petrochemicals.

But benefiting from this wealth requires more than the availability of natural resources. It calls for specialized technologies, technical expertise, long-term investment, and processing and manufacturing capabilities.

This is where Australia emerges as a potential partner, thanks to its expertise in mining and related services. The Future Minerals Forum in Riyadh in January 2026 saw a strong Australian presence, including companies and participants from the mining, education, and skills development sectors.

The value of cooperation goes beyond attracting investment; it could also extend to transferring knowledge, developing local talent, and improving exploration and operational technologies. These factors could help Saudi Arabia move from discovering resources to building an integrated industry around them.

What does mining have to do with electric cars?

Mining may seem far removed from the industries whose products we use every day, but the connection between them has become clearer as modern industries expand.

Lithium, for instance, is used in batteries for electric vehicles and energy storage systems. Developing the capacity to extract and process it could therefore support industries that Saudi Arabia is seeking to localize.

In 2024, Saudi Arabia succeeded in extracting lithium from water produced alongside oil from its fields—a step that reflects a push to explore new sources and technologies for obtaining critical minerals.

This example shows how locally available resources can be connected to future industries, rather than relying entirely on imports of processed materials from abroad.

Investing in mining: beyond the size of the wealth

Economically, having large quantities of minerals does not necessarily mean generating high returns. Viability depends on the costs of exploration, extraction, and processing; infrastructure; and mineral prices on global markets.

Building processing and refining facilities also requires capital and specialized technologies, and it may take years for investments to translate into actual production and returns.

For this reason, assessing the success of the mining sector depends not only on the size of discovered reserves or the number of new projects, but also on these projects’ ability to attract investment, create jobs, develop local industries, and generate sustainable economic value.

From natural wealth to economic advantage

Saudi Arabia’s experience in developing its mining sector shows that having resources is a starting point, not the finish line. Real value emerges when minerals are turned into production inputs that support other sectors and create new opportunities for investment and manufacturing.

Cooperation with countries that have advanced expertise, such as Australia, could help accelerate this shift, provided it is accompanied by the development of local capabilities and investment that can generate sustainable returns.

In the end, perhaps the most important question is not: How many minerals does Saudi Arabia have?

Rather: How much economic value can the Kingdom build from this wealth before it reaches the market?