Aramco to set up minerals exploration, mining JV with Ma’aden

Aramco and Ma’aden have agreed to set up a joint venture for mineral exploration and mining in Saudi Arabia.

The venture will focus on energy transition minerals, including extracting lithium from high-concentration deposits and advancing cost-effective direct lithium extraction technologies, as the kingdom pursues a bigger role in mining. Lithium is a key component in the batteries of electric cars, laptops, and smartphones.

The total global demand for lithium has tripled over the past five years, and its compound annual growth rate is anticipated to exceed 15 per cent per annum through 2035. Aramco said lithium demand in Saudi Arabia is expected to grow twenty-fold between 2024 and 2030, contributing to an estimated 500,000 electric vehicle batteries and 110 gigawatts of renewables.

“Aramco has identified several areas with a high lithium concentration of up to 400 parts per million,” the state-owned energy giant said in a statement while noting that commercial lithium production is expected to commence by 2027.

“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,” said Nasir K. Al-Naimi, Aramco Upstream President.

Al-Naimi emphasised that the venture will leverage Aramco’s upstream expertise, including cost-effectiveness, technological innovation and extensive subsurface knowledge, to meet the kingdom’s and potentially global lithium demand.

Bandar Alkhorayef, Saudi Arabia’s Minister of Industry and Mineral Resources, also said that Aramco is partnering with King Abdullah University for Science and Technology (KAUST) to pilot the lithium mining project.

Lithium Infinity, also known as Lihytech, a startup launched out of KAUST, is leading the extraction project in partnership with Ma’aden and Aramco.

Meanwhile, Ma’aden agreed to acquire SABIC’s 20.62 per cent stake in Aluminium Bahrain (Alba) as part of Saudi Arabia’s broader strategy to accelerate the expansion of its metals and mining industry under Vision 2030. The sale proceeds are expected to be between $963.25m-$1.06bn (BHD363m-398m).

Read: Saudi Ma’aden to buy nearly 21% stake in Bahrain’s Alba for $1bn