Oil giant Aramco wants to enter the lithium business

The Saudi Arabian firm Aramco, currently the world's largest oil production company, wants to turn its attention to lithium extraction and is entering into a cooperation with the Saudi Arabian Mining Company (Ma'aden). Lithium production under the direction of the duo could begin in 2027.

Both sides are planning a joint venture for the exploration and extraction of minerals in Saudi Arabia and have now signed a letter of intent to establish it. One of the main objectives of the cooperation is the extraction of lithium from highly concentrated deposits and the further development of cost-efficient technologies for direct lithium extraction (DLE). The initiators estimate that commercial lithium production could commence by 2027, although the establishment of the joint venture is still subject to the usual closing conditions, including regulatory approvals.

According to Aramco, it hopes to expand its expertise into a ‘neighbouring sector’ and use its technological innovations and skills in resource and data management. The oil giant writes that it wants to “further exploit natural resources by utilising a wealth of subsurface data and new technologies to drive the Kingdom’s economic diversification and energy aspirations.”

According to Aramco, Saudi Arabia has considerable potential for the extraction of minerals for the energy transition. The company has already identified “promising lithium concentrations exceeding 400 parts per million.” Nasir K. Al-Naimi, Aramco’s Upstream President, commented: “This announcement reflects Aramco’s focus on positively contributing to the global energy transition. The proposed JV will 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.”

Darryl Clark, Ma’aden Senior Vice President of Exploration, added: “Ma’aden has been undertaking one of the world’s largest single-jurisdiction exploration programs across the Arabian Shield, to unearth the estimated $2.5 trillion mineral endowment. 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.com