Aramco, a leading integrated energy and chemicals company, and Ma’aden, the largest multi-commodity mining and metals company in the Middle East and North Africa, have signed non-binding Heads of Terms to establish a minerals exploration and mining joint venture in Saudi Arabia. The proposed venture will focus on energy transition minerals, particularly extracting lithium from high-concentration deposits and advancing cost-effective direct lithium extraction (DLE) technologies, with potential commercial production by 2027.
The joint venture is expected to leverage Aramco’s technological innovation and expertise in resource and data management to expand into the mining sector. By unlocking Saudi Arabia’s high-value mineral resources, it aims to meet the growing domestic and global demand for lithium and other transition minerals, supporting the Kingdom’s economic diversification and energy ambitions.
Aramco has identified several areas in Saudi Arabia with high lithium concentrations of up to 400 parts per million. The venture will benefit from Aramco’s existing infrastructure, industry-leading drilling operations, and over 90 years of geological data in its operational areas.
Nasir K. Al-Naimi, President of Aramco Upstream, stated that the announcement reflects Aramco’s commitment to contributing positively to the global energy transition. He emphasized that the joint venture will enable the extraction of energy transition minerals, supporting sustainable energy solutions and diversifying Aramco’s portfolio for a lower-carbon future.
Darryl Clark, Senior Vice President of Exploration at Ma’aden, noted that the joint venture would accelerate exploration of the Arabian Platform, combining Aramco’s extensive regional knowledge with Ma’aden’s mining and exploration expertise. Ma’aden has been conducting one of the world’s largest single-jurisdiction exploration programs across the Arabian Shield, aiming to uncover an estimated $2.5 trillion in mineral endowment.
Lithium is a critical component in the energy transition, essential for electric vehicles, energy storage, and renewable energy sectors. Global demand for lithium has tripled over the past five years, with a compound annual growth rate expected to exceed 15% per annum through 2035. The joint venture could help meet Saudi Arabia’s projected lithium demand, anticipated to grow twenty-fold between 2024 and 2030, supporting an estimated 500,000 electric vehicle batteries and 110 gigawatts of renewable energy capacity.
The planned joint venture, subject to customary closing conditions and regulatory approvals, was announced during the Future Minerals Forum in Riyadh.
Source: Aramco News