Saudi Aramco and the Saudi Arabian Mining Company (Ma’aden) have signed a letter of intent to form a joint venture aimed at developing lithium extraction in the Kingdom, with commercial production targeted to commence by 2027, pending regulatory approvals.
The partnership seeks to explore and extract minerals critical to the energy transition, with a focus on lithium, a key component in batteries for electric vehicles and renewable energy storage. The proposed venture also aims to develop cost-efficient direct lithium extraction (DLE) technologies.
Aramco highlighted its ambition to broaden its expertise into adjacent sectors. “This announcement reflects Aramco’s focus on positively contributing to the global energy transition,” said Nasir K. Al-Naimi, Aramco’s Upstream President. He added that the project would “enable extraction of energy transition minerals, contributing meaningfully to the growth of more sustainable energy solutions while diversifying our portfolio for a lower-carbon future.”
Ma’aden noted Saudi Arabia’s significant mineral resources, including the Arabian Shield region, estimated to hold a $2.5 trillion mineral endowment. Darryl Clark, Ma’aden’s Senior Vice President of Exploration, stated, “This proposed JV would enable us to accelerate exploration of the Arabian Platform, combining Aramco’s vast knowledge of the area with Ma’aden’s extensive mining and exploration expertise.”
Aramco has reported identifying promising lithium concentrations exceeding 400 parts per million, underscoring the potential for the Kingdom to emerge as a key player in global mineral production. The initiative aligns with Saudi Arabia’s broader economic diversification and sustainability goals.