Global use of electric vehicles, batteries and AI platforms is rising rapidly. According to the June edition of U.N. Trade and Development’s Global Trade Update, “there is a rise in the global demand for minerals used in the manufacturing of electric vehicles, battery storage, renewable energy technologies, semiconductors and AI data centers.” These minerals, such as lithium, phosphate, and copper, are identified as critical minerals.
Mining for critical minerals is taking center stage in many nations’ economic agendas. “Global lithium mine production increased from 28,000 tons in 2010 to 290,000 tons in 2025, while there has been a 40% increase in refined copper usage since 2010,” according to Statista, a data curator.
Over the past three years, Egypt has focused more on mining as a lucrative economic driver. “The mining sector remains one of the ministry’s top priorities as Egypt seeks to diversify its economy and maximize the value of its natural resources,” Karim Badawi, minister of Petroleum and Mineral Resources, told the media in June.
The government issued several regulatory changes to benefit the mining industry under its Open Blocks System (OBS). Meanwhile, international firms are investing to unearth Egypt’s critical minerals and enhance mining infrastructure.
These changes in Egypt align with rising global demand for critical minerals essential to manufacturing in several industries, including clean energy, clean technology, industrial applications, and defense systems. Other countries in the MENA region are also competing to benefit from demand for these minerals.
Geological wealth
The Egyptian desert is rich in critical rare-earth minerals. According to Egypt’s Cabinet Information and Decision Support Center, “Egypt’s black sands contain approximately 285 million tons of mineral-bearing sand, with average heavy mineral concentrations of 3.4% used in multiple industrial sectors such as ceramics, electronics, pigments, aerospace materials and advanced engineering applications.”
According to Egypt Oil & Gas, a research firm, “phosphate is becoming increasingly relevant for clean technology products and energy storage systems.” It is an essential component in the manufacturing of lithium iron phosphate batteries and phosphorene semiconductors.
“Egypt possesses significant phosphate reserves estimated at more than 3 billion tons,” said Egypt Oil & Gas.
Moreover, Egypt has an abundant supply of copper. According to the State Information Service (SIS), “there is an estimated 1 million tons of confirmed copper in the Sinai Peninsula, and Abu Swail, Wadi Himour and Akarem in the Eastern Desert.”
Copper is important for manufacturing renewable energy hardware. For example, “solar photovoltaic installations require copper for wiring, inverters and grid connections, and wind turbines depend on copper for generators and electrical systems,” according to Egypt Oil & Gas.
Egypt is not only rich in phosphate and copper, but also in several other critical minerals. According to the State Information Service, “Egypt possesses an abundant supply of minerals such as uranium, platinum, talc, sulfur, potassium and Quartz”.
Gifts to the private sector
The government issued several regulatory changes making it easier for investors in the mining industry. In May, Prime Ministerial Decree No. 1440 was passed amending articles of the Mineral Resources Law No. 198 of 2014.
According to Adsero, an Egyptian law firm, “the amendments now allow licensees to add any new minerals discovered to already existing licenses, subject to the Egyptian Mineral Resources and Mining Industries Authority’s approval.” In the old law, “it was prohibited to add newly discovered minerals to existing licenses unless new and old minerals could not be extracted separately,” according to Adsero.
The government’s regulatory changes save investors time in the bidding process and offer more chances to invest. Yasser Ramdan, chairman of the Egyptian Mineral Resources and Mining Industries Authority, told the media in October 2025 that the Ministry of Petroleum and Mineral Resources will launch an online mining portal in January, allowing investors to submit bids for exploration and exploitation rights without time restrictions.
The ministry announced in May the reduction of its minimum public capital participation threshold from 25% to 10%. However, according to Adsero, “the government also issued a tenfold increase in mining fees such as exploration expenditure and exploitation rents.”
In addition to launching the portal, the ministry organized the Egypt Mining Forum in September. The forum should create investment and networking opportunities among professionals and investors in mining exploration, technology, and infrastructure.
Badawi described the event as “based on an ‘integrated mining ecosystem’ concept. This approach expands beyond traditional mining activities to encompass the entire value chain, from geological exploration and research to development, production, local manufacturing, and maximizing the added value of mineral resources.”
Promising explorations
The mining industry is a growing government focus. At the 2024 ADIPEC Energy Conference, Badawi discussed how, “for nearly 60 years, Egypt has focused on oil and gas, while the mineral sector has been ignored. The minerals sector is gaining a lot of importance, and rightly so.”
In June, the minister met with representatives from Velox and Perseus Mining, two Australian companies, to discuss how Egypt could learn from the Australian model and increase FDI in the mining sector.
During the meetings, Badawi stressed on the important role private investors play in “leveraging their expertise in developing mining companies, financing exploration operations for critical minerals and transforming discoveries into productive projects.”
Aligning with its efforts to increase private sector investment in mining, the ministry announced in May it would conduct aerial surveys for mineral exploration across six geographical zones. Moreover, in July, Schlumberger Limited met with the ministry and announced it would conduct pilot tests in the Eastern Desert for potential lithium extraction.
The government’s steps to boost private-sector investment in mining are part of its Vision 2030. According to Egypt Oil & Gas, the amendments to the mining law “act as a qualitative leap in the development of the Egyptian mining sector. This step translates Egypt’s Vision 2030 toward a competitive and sustainable economy and solidifies Egypt’s position as a regional hub for mining industries.”
Less waste, fewer hazards
Traditionally sought-after minerals such as coal and iron ore are declining in demand in contrast to the trending critical minerals. According to the International Energy Agency, “global demand for critical minerals used in clean energy technologies could increase by up to six times by 2040.”
This transformation is driven by investors’ goal of replacing non-recyclable hazardous minerals, such as coal, with less hazardous minerals such as lithium used in clean technology and clean energy. According to Earth.org, an environmental news website, “Industries are now focusing on using critical minerals in manufacturing goods that are sustainable, recyclable and clean.”
Regional focus
Saudi Arabia, the U.A.E. and Qatar are investing in their mining industries. “The geological landscape of the kingdom is home to some of the world’s most in-demand natural resources, further positioning the Kingdom as a rare-earth pioneer,” according to the Saudi Press Agency. Recent exploration shows an abundant supply of critical minerals along Saudi Arabia’s western coast, particularly in the area of Jabal Sayyid and Jabal Quraiyah.
The Saudi government is eager to benefit from its critical mineral deposits as part of Vision 2030, with Minister of Industry and Mineral Resources Bandar Alkhorayef calling critical mining the third pillar of the national economy.
One main goal for Saudi Vision 2030 is to have a thriving economy not solely dependent on oil and natural gas exports. Therefore, the government is capitalizing on critical minerals reserves as a possible path toward economic diversification. “Saudi Arabia has committed $100 billion in mining investments by 2035, with $75 billion already allocated to active projects such as nuclear energy and green hydrogen,” according to Saudi Energy Consulting,
The U.A.E. also aspires to become a regional player in critical mineral supply chains. “The U.A.E. does not have an abundant supply of critical, rare-earth minerals,” said the Khaleej Times. However, in October 2025, Abu Dhabi’s sovereign wealth fund invested $600 million to launch the Orion Critical Mineral Consortium, a platform to support supply chains.
Moreover, the U.A.E. has invested in critical mineral refining. In February 2024, “Khalifa Economic Zones Abu Dhabi (KEZAD Group) and U.A.E.-based Titan Lithium announced a 50-year land lease agreement for the establishment of a state-of-the-art lithium processing plant,” said Emirates News Agency. “Development of refineries should enhance the U.A.E.’s position in the value chain of critical minerals,” said ORF Middle East, a Dubai think tank.
Qatar is investing in exploration in Southern Africa. Like the U.A.E., Qatar is not rich in critical mineral deposits. However, according to Qatar Investment Authority (QIA), Qatar is investing about $500 million in mining activities in mineral-rich countries like the Democratic Republic of the Congo and South Africa. The authority said Qatar will use the minerals it imports to manufacture clean-technology products. Such investments are part of Qatar’s Vision 2030 to diversify its economy away from reliance on oil and natural gas exports.
Next-gen: green mining
International concerns are accelerating over climate change and its effect on the global environment. “Global temperatures are expected to cross the 1.5 degrees Celsius [by 2030] set in the 2015 Paris Agreement,” said the U.N. Environmental Program.
Mining practices are one driver accelerating climate change. “The destruction of vegetation and soils when land is cleared for mining results in the release of carbon dioxide and other greenhouse gases,” according to Earth.org. “Creation of products from mined materials uses high amounts of energy … most of this energy is currently sourced from the burning of fossil fuels.”
The government is aware of the climate and environmental concerns associated with mining. At a meeting in April, Minister of Industry Khaled Hashem stressed Egypt is “advancing toward a green industrial economy where the government is improving operational efficiency and rationing energy consumption.”
As more industries shift toward clean energy and clean technology, the need for critical minerals is likely to keep rising. “Demand growth for critical minerals continues to be strong across all scenarios, almost doubling by 2040,” according to the International Energy Agency.
The government is focusing on further integrating Egypt into the global critical mining industry. In September, Badawi told the media, “The ministry will continue to support and qualify mining sector personnel and expand areas of cooperation with mining organizations.”
