Italy's Eni, UAE's ADQ to strengthen supply chains for critical minerals

Gulf Business

24-02-2025

Image: Eni/ For illustrative purposes
ADQ has entered into a memorandum of understanding (MoU) with Eni, a Rome-based global energy technology company, to explore potential areas of cooperation aimed at strengthening supply chains for critical minerals essential to the global energy transition.
The MoU focuses on identifying investment opportunities and synergies in regions such as Africa, North America, and Central Asia, where both companies plan to explore the entire critical minerals value chain, from mining and refining to processing and downstream applications.
The partnership will also assess the feasibility of establishing refining and processing facilities in the UAE, Italy, and other strategic locations.
The growing demand for critical minerals, including lithium, cobalt, nickel, and rare earth elements, is expected to increase sixfold by 2050, according to the International Energy Agency (IEA).
This surge in demand is driven by the increasing adoption of clean energy technologies such as electric vehicles, wind turbines, solar panels, and energy storage systems, all of which heavily rely on these minerals.
MoU to build on ADQ and Eni's areas of expertise
Hamad Al Hammadi, deputy group CEO of ADQ, stated: 'As the world transitions to cleaner energy solutions, safeguarding a stable and resilient supply of critical minerals is essential for enabling the development and deployment of technologies that drive this fundamental change. Through our MoU with Eni, we aim to combine our expertise and capabilities to develop high-impact projects across the entire value chain that ensure the availability and affordability of these critical resources.'
Al Hammadi continued: 'This partnership underscores our commitment to forging collaborations that deliver long-term, transformative value for both our portfolio companies and the broader economies they serve.'
Claudio Descalzi, CEO of Eni, remarked: 'The agreement with ADQ is a testament to our shared commitment to a sustainable energy future. Through innovation and collaboration, we will develop initiatives essential to the energy transition. This strategic cooperation highlights our dedication to advancing technological progress and contributing to global energy security.'
Eni, operating in 62 countries, is focused on ensuring energy security while leading the energy transition. The company aims to achieve carbon neutrality by 2050, focusing on decarbonising its processes and products. Eni is investing in the development of technologies that can accelerate the shift toward sustainable energy solutions.
The MoU complements ADQ's existing investments in the sector, including its recent partnership with Orion Resource Partners.
وقعت 'القابضة' (ADQ) مذكرة تفاهم مع إيني الإيطالية لاستكشاف فرص التعاون في مجال سلاسل التوريد الخاصة بالمعادن والموارد الأساسية اللازمة للتحول في قطاع الطاقة.
ADQ and
— ADQ (@Adq_Official)
The joint venture, Orion Abu Dhabi, focuses on critical metals and materials required for sustainable economic growth and the global energy transition.
The collaboration between ADQ and
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Eni signs two other agreements with UAE companies
Eni has signed a letter of intent with MGX, a leading investment fund focused on AI and Advanced Technology, and Abu Dhabi-based G42, to develop state-of-the-art data centres in Italy with a planned IT capacity of up to 1 GW.
These facilities will be powered by blue power, a low-carbon energy source generated by natural gas power plants with CO2 emissions captured and stored. The first project will be developed in Ferrera Erbognone in two phases, with up to 500 MW of IT capacity.
Additionally, Eni has partnered with Masdar and Taqa Transmission to establish long-term power off-take arrangements for renewable energy generated in Albania, with a capacity of up to 3 GW transmitted through a 1 GW subsea interconnection to Italy.
This agreement follows a strategic partnership framework signed by Italy, Albania, and the UAE in January.
Eni in the UAE
Eni has been operating in the UAE since 2018, holding a 70 per cent stake in Abu Dhabi's offshore Blocks 2 and 3, and a 10 per cent share in the offshore Ghasha concession.
The company also has stakes in the Lower Zakum (5 per cent) and Umm Shaif/Nasr (10 per cent) offshore concessions and owns 20 per cent of ADNOC Global Trading and ADNOC Refining, which operates the fourth-largest refining complex globally in Ruwais, with a capacity of over 900,000 barrels per day.