Aramco and Ma’aden have signed a non-binding Heads of Terms to establish a joint venture focused on minerals exploration and mining in Saudi Arabia, mainly targeting energy transition minerals like lithium. The collaboration aims to develop cost-effective direct lithium extraction technologies, with commercial production expected by 2027.
This initiative seeks to leverage Aramco’s technological resources and data management expertise to unlock Saudi Arabia’s mineral potential, addressing the increasing domestic and global demand for lithium and other transition minerals. The joint venture plans to utilise subsurface data and emerging technologies to support the Kingdom’s economic diversification and energy goals.
Aramco has identified areas within its operations with lithium concentrations up to 400 parts per million. The joint venture will benefit from Aramco’s existing infrastructure, extensive drilling operations, and over 90 years of geological data.
Nasir K. Al-Naimi, Aramco’s Upstream President, stated, “This announcement reflects Aramco’s focus on positively contributing to the global energy transition.” He emphasised that the partnership aims to meet both Saudi Arabia’s and the world’s projected lithium demand.
Darryl Clark, Ma’aden’s Senior Vice President of Exploration, noted that the joint venture would accelerate exploration of the Arabian Platform by combining Aramco’s regional knowledge with Ma’aden’s mining and exploration expertise.
Lithium is essential for producing batteries used in electric vehicles, energy storage systems, and renewable energy technologies. Global demand for lithium has tripled over the past five years, with a projected compound annual growth rate exceeding 15% through 2035. Saudi Arabia’s demand for lithium is expected to increase twenty-fold between 2024 and 2030, supporting the production of approximately 500,000 electric vehicle batteries and 110 GW of renewable energy capacity.
The joint venture is subject to customary closing conditions, including regulatory approvals, and was announced during the Future Minerals Forum in Riyadh.
