The Wall Street Journal, citing people familiar with the matter, reported on Sunday that the United States and Saudi Arabia are in talks aimed at securing metal minerals needed for the energy transition from Africa.
A joint venture backed by the Saudi government will buy interests in mining assets worth $15 billion in African countries including the Democratic Republic of Congo, Guinea and Namibia, which will allow U.S. companies the right to buy some of the production.
The US is playing catch-up with China in the supply of metals such as cobalt and lithium. Metals such as cobalt and lithium are used in batteries for electric cars, laptops and smartphones.
In a similar arrangement in July, Saudi Arabian Mining Company (Ma 'aden) and Saudi Arabia's Public Investment Fund (PIF) bought a 10 percent stake in Brazil's Vale base metals unit, while U.S. investment firm Engine No. 1 bought 3 percent.
Saudi Arabia's Public Investment Fund (PIF) approached Congo in June to invest in the country's cobalt, copper and tantalum through its joint venture with Saudi Arabian mining company Manara Minerals, the newspaper said.
Manara also focuses on iron ore, nickel and lithium.
The Wall Street Journal also said the White House is seeking financial support from other sovereign wealth funds in the region, but talks with Saudi Arabia are progressing the most. The Saudi government and the White House did not immediately respond to requests for comment.
