Saudi Aramco and Ma’aden have jointly announced a significant move to bolster Saudi Arabia’s emerging lithium industry, marking a key development in the Kingdom’s strategic push to diversify its economy and strengthen its role in the global energy transition.
According to an official statement released at the Future Minerals Forum in Riyadh on January 15, 2025, the two companies have signed non-binding Heads of Terms that contemplate the formation of a new joint venture focused on exploring and extracting transition minerals, with an initial emphasis on lithium.
The partnership envisages a new mining-focused entity, leveraging Aramco’s technological expertise, its longstanding resource management skills, and Ma’aden’s mining experience. The JV is poised to draw on Aramco’s world-class drilling operations, existing infrastructure, and wealth of more than 90 years of geological data.
The move echoes a broader vision for the Kingdom’s resource potential, particularly with regard to transition minerals that underpin clean energy solutions. Ma’aden, which is the region’s largest multi-commodity mining and metals company, has embarked on one of the world’s largest single-jurisdiction exploration efforts across the Arabian Shield. With an estimated mineral endowment of around $2.5 trillion in Saudi Arabia, the two partners see an opportunity to tap into domestically available lithium to help meet accelerating global demand.
A standout aspect of the proposed JV lies in its emphasis on utilizing new and cost-effective direct lithium extraction technologies. The partnership would target the Kingdom’s high lithium concentration areas—some deposits reportedly contain up to 400 parts per million—and aims to commence commercial production by 2027. By adopting DLE methods, which can have a smaller environmental footprint than conventional lithium extraction techniques, Aramco and Ma’aden aim to support sustainable mining practices.
Lithium has become a linchpin in the ongoing shift toward cleaner energy solutions. As a key component in lithium-ion batteries, it powers electric vehicles (EVs), supports energy storage systems, and underpins many renewable energy applications. Global demand for lithium has tripled over the past five years, and market analysts predict that this upward trajectory will continue, with a compound annual growth rate surpassing 15% through 2035.
According to statements made at the Future Minerals Forum, Saudi Arabia’s domestic lithium requirements are set to multiply nearly twenty-fold between 2024 and 2030. This demand will stem primarily from EV battery production—potentially supporting up to 500,000 electric vehicle batteries—and the growth of 110 GW of new renewable energy capacity.
Saudi Arabia’s Ministry of Industry and Mineral Resources reiterated its support for the Aramco–Ma’aden initiative during the second day of the Future Minerals Forum in Riyadh. Officials cited the JV as a cornerstone in the Kingdom’s push to become a leading global supplier of energy transition minerals.
This endorsement signals the government’s willingness to provide regulatory guidance and potentially expedite approvals that would help both companies meet their goal of starting commercial lithium production by 2027.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
