Aramco and Ma’aden are to mine lithium in Saudi Arabia

Commercial lithium production is planned to start by 2027

Saudi Aramco and Ma’aden, two listed companies on the Saudi bourse, will launch a joint venture for minerals exploration and mining in the kingdom. The proposed venture will focus on energy transition minerals, which includes lithium extraction from high-concentration deposits and use of cost-effective direct lithium extraction technologies.

«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», said Darryl Clark, Ma’aden senior vice President of exploration, in a press statement.

Commercial lithium production is estimated to commence by 2027.

The new venture is likely to benefit from Aramco’s existing infrastructure, drilling operations and decades-old geological data. The Saudi energy giant has already identified several areas with a high lithium concentration of up to 400 parts per million.

Aramco has also partnered with King Abdullah University for Science and Technology to develop lithium extraction technology. Researchers from the university published a paper in Science journal in September outlining a new method to extract lithium from brine containing as little as 20 parts per million.

Lithium is a major component in the energy transition chain, supporting fast-growing sectors such as electric vehicles (EVs), energy storage and renewables.

The mineral’s global demand has tripled over the past five years, with the market expected to grow at a compound annual growth rate of 7.2% through to 2035.