Saudi minister says that oil is no longer a major concern for energy security, as the focus shifts to critical minerals.

• According to Saudi Energy Minister Abdulaziz bin Salman, gas, electricity, and minerals will replace oil as the primary energy security challenge.
• The energy transition and advanced technologies require critical minerals such as lithium, cobalt, nickel, graphite, manganese, and rare earth elements, as mentioned by the energy minister.
• Approximately 60% of global rare earth minerals and materials are currently under China's control.

The Saudi Arabian energy minister believes that oil is no longer a threat to energy security.

He said that the upcoming battle will be for different materials buried underground: critical minerals.

According to Saudi Energy Minister Abdulaziz bin Salman, gas, electricity, and minerals will replace oil as the primary energy security challenge.

"Some countries possess 50% ownership of certain minerals and critical minerals, prompting them to race for access and secure their own supply chain. However, this rush to secure resources will result in higher emissions, higher metal costs, and higher energy prices."

The energy transition requires minerals such as lithium, cobalt, nickel, graphite, manganese, and rare earth elements, which are used in advanced technologies like electric vehicles, batteries, renewable energy technology, computers, and household goods.

The report by Rice University's Baker Institute for Public Policy states that China currently controls approximately 60% of the world's production of rare earth minerals and materials. This has caused concern among many countries, particularly those in the West, as these resources are increasingly important to national security and economic stability.

The energy minister, Bin Salman, stated that the increase in AI and data centers would lead to a rise in energy demand. He added, "Imagine the race between mining to create energy and energy to create mining, and the growth of these economies."

"I am not in favor of being the energy minister at that time."

The increasing demand for data centers to power AI, factories, electric vehicles, and hotter and longer summers is driving electricity demand worldwide. A recent energy department memo predicts that U.S. power grids could face up to 25 gigawatts of new data center demand by 2030.

Renewable technologies such as solar panels and wind turbines require critical minerals and rare earth metals, which are crucial for many countries' efforts to transition away from fossil fuels. Despite mining only a small percentage of its global supply, China refines 95% of the world's manganese, a chemical element used in batteries and steel manufacturing.

Saudi Arabia declared on Wednesday that it is currently working on a $100 billion mining investment, with the goal of establishing itself as a global center for both mining and minerals extraction and processing. The kingdom intends to intensify its exploration for lithium and other critical minerals within its own borders.

To diversify its economy away from oil, Saudi Arabia aims to strengthen its minerals sector and establish a domestic supply chain as part of its Vision 2030 plan.