Aramco plans a joint venture for transitional metals with “Ma’aden”

Saudi Aramco, one of the world’s leading integrated energy and chemicals companies, and Aramco, the largest multi-commodity mining and metals company in the Middle East and North Africa region, today announced the signing of a non-binding letter of intent to plan a joint mineral exploration and mining project in the Kingdom.
The project will focus on minerals associated with the energy transition, including extracting lithium from highly concentrated deposits, and developing cost-effective technologies for direct lithium recovery. The joint venture is expected to begin commercial lithium production by 2027.

Expanding Aramco’s capabilities

The project is expected to expand Saudi Arabia’s capabilities into another adjacent sector, benefiting from its technical innovations and expertise in resource and data management.
The project will seek to exploit the potential of the Kingdom’s high-value mineral resources to help meet the growing demand for lithium and metals locally and internationally. The project is expected to contribute to enhancing economic diversification and the Kingdom’s energy ambitions.

Lithium extraction

The Kingdom has tremendous potential for extracting transitional minerals for energy. For example, as part of its work, Saudi Aramco has identified several areas with high lithium concentrations of up to 400 ppm.
The project is expected to benefit from Saudi Aramco’s extensive experience and business, including the use of existing infrastructure, its leadership in drilling, as well as more than 90 years of geological data in its business area.

Energy transformation

“This announcement reflects Saudi Aramco’s focus on making a positive contribution to the global energy transition,” said Nasser Al-Naimi, President of Exploration and Production at Saudi Aramco.
He added: “This joint project will enable the extraction of minerals associated with the energy transition, contributing meaningfully to the growth of more sustainable energy solutions, and diversifying our business portfolio for a low-carbon future.”
He expected that this partnership would benefit from the advantages of Saudi Aramco as a global leader in the field of exploration and production, its industrial expertise, its technical innovations, and its integrated supply chain system, with the aim of meeting the Kingdom’s demand for lithium and the possibility of meeting the expected global demand.

Mineral wealth exploration

The Senior Vice President of Exploration and Development at Ma’aden Company, Dr. Darrell Clarke: “Ma’aden has launched one of the largest exploration programs in the world within a single geographic scope in the Arabian Shield region, seeking to explore mineral wealth estimated at approximately $2.5 trillion.”
He added: “This new partnership allows us to intensify exploration operations on the Arabian Shelf, benefiting from the in-depth knowledge that Saudi Aramco possesses in the region, and the expertise that Ma’aden enjoys in the fields of mining and exploration.”
Lithium is a key component of the energy transition and is essential for production in rapidly growing sectors such as electric vehicles, energy storage and renewable energy.
Over the past five years, total global demand for lithium has tripled, and its annual growth rate is expected to exceed 15% per year by 2035.
This project would help meet the Kingdom’s expected demand for lithium, which is expected to grow twenty-fold between 2024 and 2030, and this would contribute an estimated 500,000 electric car batteries and 110 gigawatts of renewable energy sources.
The proposed project, which is subject to closing conditions including required regulatory approvals, was announced during the Fourth International Mining Conference in Riyadh.