US-based private investment firm Cove Capital LLC has partnered with Saudi industrial conglomerate Tariq Abdel Hadi Abdullah Al-Qahtani & Brothers Company (AHQ) on the joint development of critical minerals assets.
A memorandum of understanding (MOU) was signed on Thursday establishing the framework for collaboration to identify, evaluate, acquire, finance and operate critical minerals projects globally.
The partnership is intended to strengthen secure, allied-aligned supply chains serving both the US and Saudi Arabia, while advancing broader bilateral industrial cooperation, the companies said in a statement.
Specifically, Cove Capital and AHQ will jointly evaluate upstream and midstream critical minerals assets, form project-level joint ventures or special purpose vehicles, and develop downstream refining, processing and manufacturing capacity in both regions.
They will also explore the establishment of a dedicated critical minerals investment fund focused on deploying capital into strategic mining assets and advanced processing technologies.
The collaboration aligns with Saudi Arabia’s Vision 2030 objectives to expand its mining sector, localize industrial capacity and position the Kingdom as a global hub for minerals processing. It also aligns with ongoing US initiatives to strengthen domestic and allied supply chains for critical minerals that are foundational to national defense and economic resilience.
Under the agreement, the parties intend to pursue diversified financing structures, including participation from Saudi institutional and sovereign capital, engagement with US development finance institutions, potential alignment with the recently announced $12 billion US critical minerals stockpile initiative, and private capital from both Saudi and US markets.
A joint steering committee will be established to review opportunities and oversee coordination, with specific projects to be governed by definitive agreements executed separately, the companies said.
“This MOU represents a meaningful step in aligning US and Saudi industrial capabilities around critical minerals that underpin modern defense systems, advanced manufacturing, and emerging technologies. AHQ brings significant industrial strength and regional leadership,” Pini Althaus, chairman and CEO of Cove Capital, commented.
Founded in 2015, Cove Capital is focused on identifying and investing in critical minerals assets across the globe. To date, it has established a large presence in Central Asia through a 70% ownership in a tungsten mining joint venture in Kazakhstan.
“Critical minerals are central to the Kingdom’s industrial transformation and to global economic stability. In Cove Capital, we are partnering with what we view as the leading US critical minerals investment and development group, given its track record of advancing world-class projects,” Abdulmalik Tariq Alqahtani, chief executive of AHQ, added.
