Summary
- Aramco and Ma’aden signed an agreement to form a joint venture for lithium production
- The JV aims to extract lithium from high-concentration deposits and advance DLE technologies
- Lithium demand in Saudi Arabia expected to grow twenty-fold by 2030
- Aramco identified areas with high lithium concentration up to 400 parts per million
- Proposed JV aims to meet Kingdom and global lithium demand, leveraging industry experience and technology
Article
Saudi energy firm Aramco and mining company Ma’aden have entered into a joint venture to potentially kickstart lithium production by 2027 in Saudi Arabia. The proposed JV aims to extract lithium from high-concentration deposits and advance direct lithium extraction (DLE) technologies to meet the growing demand for lithium both domestically and globally. Aramco has identified areas in Saudi Arabia with high lithium concentrations of up to 400 parts per million.
Nasir K. Al-Naimi, the Upstream President at Aramco, highlighted the significance of the proposed joint venture in enabling the extraction of energy transition minerals. He emphasized that the partnership will leverage Aramco’s position as a leading upstream enterprise to apply low-cost advantages, industry experience, technological innovation, and an integrated supply chain ecosystem to meet the projected lithium demand in the Kingdom and potentially around the world. The aim is to support Saudi Arabia’s increasing demand for lithium, which is expected to grow twenty-fold between 2024 and 2030.
The joint venture between Aramco and Ma’aden is strategically focused on addressing the rising demand for lithium, driven by the growth in electric vehicle (EV) batteries and renewable energy. The partnership aims to utilize Aramco’s expertise in upstream operations and Ma’aden’s experience in mining and metals to extract lithium from deposits with high concentrations. With the support of DLE technologies, the JV aims to contribute to fulfilling the Kingdom’s energy transition goals and support the development of EV batteries and renewable energy projects.
This collaboration between Aramco and Ma’aden signifies a significant step towards establishing a lithium production industry in Saudi Arabia, aligning with the country’s goals of diversifying its economy and becoming a global hub for clean energy technologies. By combining their resources and expertise, the two companies aim to develop a sustainable and competitive lithium production ecosystem that will cater to the increasing demand for lithium-based products in the region and beyond. The partnership is expected to play a crucial role in the advancement of energy transition initiatives in Saudi Arabia.
The formation of the joint venture reflects a strategic move by Aramco and Ma’aden to capitalize on the growing market for lithium and position themselves as key players in the global supply chain for battery materials. By leveraging their respective strengths and capabilities, the two companies intend to establish a strong presence in the lithium production sector, with a focus on enhancing efficiency, reducing costs, and optimizing the extraction process. The JV aims to contribute to the development of a sustainable and environmentally friendly lithium supply chain that can support the transition towards cleaner energy sources.
In conclusion, the partnership between Aramco and Ma’aden to establish a joint venture for lithium production in Saudi Arabia represents a significant development in the energy transition sector. By combining their expertise and resources, the two companies aim to harness the potential of lithium extraction and contribute to meeting the growing demand for lithium-based products, particularly in the EV battery and renewable energy sectors. This strategic collaboration aligns with Saudi Arabia’s vision of diversifying its economy and embracing clean energy technologies, while also positioning the country as a key player in the global lithium market.
Read the full article here
