- The UAE and US, with Orion Resource Partners, launched a $1.8 billion fund to boost access to key minerals like lithium and rare earths
- The Orion Consortium will back production-ready mining and refining projects, aiming to grow the fund to $5 billion
- The move strengthens supply chains, reduces dependency risks, and supports clean energy and tech industries
The United Arab Emirates and the United States, in collaboration with Orion Resource Partners, have announced an investment of $1.8 billion to improve access to critical minerals such as lithium, copper, and rare earth materials to the economies and allies.
These critical minerals are essential to the renewable energy, electric vehicle, electronic good, and defense technologies industries. The UAE US partnership has announced a critical minerals agreement to secure global minerals supply and support the clean energy transition.
The investment will be made through the new Orion Critical Mineral Consortium, with $600 million contributed by each partner. The consortium also intends to expand its fund to $5 billion by recruiting additional global and institutional investors. This UAE critical minerals deal highlights UAE investment in strategic minerals trade, involving a US energy firm, according to UAE economy news on advancing sustainable resources.
The consortium plans to invest in projects that mine or refine critical minerals that are either producing or can be brought into production quickly, allowing for increased mineral supply to U.S. and partner markets most quickly.
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Orion Resource Partners, a natural resource sub-sector investment company headquartered in the United States, would be responsible for the management of the consortium and projects selected to be funded. The consortium's approach would emphasize projects that are ready for production and in regions where a mining development is already present, thus reducing risk of exploration and speeding up delivery to international markets.
This program would also support larger geopolitical objectives of ensuring secure and diversified sources of critical minerals as global demand for critical minerals grows, and supply chains become uncertain.
Through this partnership with Orion and the U.S. International Development Finance Corporation, the UAE would position itself to be one of the contributors to global mineral security. The consortium would work proactively to alleviate bottlenecks to supply and draw in new sources of capital, supports innovation in sustainable extraction and processing of critical minerals, and position to create a sustainable technological and economic growth.