The UAE is entering the era of the lithium industry in the automotive, energy and electronics sectors

The UAE has entered the era of the lithium industry to open the way for the development of sectors, most notably: energy storage, electronics, batteries, medical industries, glass and ceramics, which are in line with the country’s plans to shift towards a sustainable economy based on industrial innovation. The Interregional Center for Strategic Analysis, based in Abu Dhabi, confirmed that the UAE’s outlook for lithium industries comes within the framework of strengthening the industrial sector and attracting foreign investments in this vital industry, which is the main component of many industries, while the size of the global lithium market during the year 2025 is expected to range between 15 billion To 18 billion dollars.
The most important industrial uses of lithium in the UAE are highlighted in supporting advanced industries and technological innovations, including: manufacturing lithium-ion batteries for electric cars, which is considered one of the main axes in the UAE’s strategy to shift towards clean energy and in electronic devices, as “lithium” is used in phone and laptop batteries. And smart devices that are produced or assembled locally.
The renewable energy storage industry is one of the UAE’s most important goals towards sustainability, as solar and wind energy projects need large batteries to store the energy produced, which enhances the sustainability of clean energy projects and in the manufacture of some medicines, the manufacture of heat-resistant glass and high-quality ceramics, and lithium alloys are used in the manufacture of aircraft and vehicles. Aerospace and in the manufacture of high-performance industrial lubricants.
The UAE has recently attracted investments in the lithium sector and has developed local industrial projects, as the Abu Dhabi National Oil Company (ADNOC) plans to extract lithium from salt water in its oil fields, using advanced technologies that are considered an environmentally friendly alternative compared to traditional mining methods, as it avoids the need for open mines or mines. Large evaporation basins ADNOC also cooperates with Aramco, with the aim of enhancing joint capabilities in this field.
In this context, Titan Lithium announced its plans to establish an advanced lithium processing plant in 3 stages, with investments amounting to 5 billion dirhams, to manufacture electric car batteries in the Khalifa Industrial Zone (KIZAD) in Abu Dhabi. The Australian company Lebedico intends to build a facility for the production of lithium hydroxide and sustainable chemicals in Kizad, with an investment of 348 million dirhams to strengthen the UAE’s position in the supply chain. With regard to foreign investments: UMPC Mining Projects Company, based in Dubai, is investing about 550 million dollars. In a lithium extraction project in the Argentine province of Catamarca.

Interregional said: Through these investments and initiatives, the UAE seeks to strengthen its position in the global lithium market, which contributes to the transfer of technology and provides job opportunities while adhering to the principles of sustainability and the circular economy, accelerating the spread of electric cars and promoting innovation in clean energy within commitment to sustainability goals and enhancing exports. While developing lithium production and battery manufacturing capabilities for regional and global markets. Through these investments and projects, the UAE aims to strengthen its position as a regional center for the lithium industry and meet the growing demand for electric vehicle batteries, which supports the transition towards clean energy and sustainable development.

Interregional confirmed that the UAE can produce lithium locally to enhance the electric car industry, as it is working to develop an integrated supply chain that includes lithium extraction and processing and battery manufacturing by providing strong government support and long-term strategies, within the “300 Billion” project, aimed at developing advanced industries, Including the manufacture of electric cars and batteries, which provides a stimulating investment environment for companies working in this field.
Interregional explained that the UAE has an advanced industrial infrastructure, ports and logistical areas that support the import of lithium ore from countries such as Zimbabwe, Australia and Argentina and its processing locally, which opens new horizons for achieving self-sufficiency and supporting the electric car industry locally, with expectations of imports to the UAE reaching 150 thousand tons. Annually to support its advanced industrial projects in the field of electric vehicle batteries. Global demand for lithium during 2024 reached about 1.4 million metric tons, an increase of 53% compared to 2023, and demand is expected to continue to grow in 2025, driven by the increase in the production of electric cars and the expansion of battery uses. Countries such as Chile plan to double their production of lithium during the next decade.