Aramco Partners with Ma’aden to Explore Energy Transition Minerals in Saudi Arabia
DHAHRAN, Saudi Arabia, Jan. 18, 2025 / – Aramco, a global leader in energy and chemicals, has entered into a preliminary agreement with Ma’aden, the Middle East and North Africa’s largest multi-commodity metals and mining firm, to form a joint venture in Saudi Arabia. The collaboration focuses on mining and exploring energy transition minerals, particularly lithium, which plays a crucial role in industries like electric vehicles and energy storage.
The joint venture aims to leverage Aramco’s extensive geoscientific data, digital capabilities, and subsurface knowledge, alongside Ma’aden’s mining expertise accumulated over decades. One of the key goals is to extract lithium from high-concentration deposits, with commercial production potentially commencing as early as 2027. This initiative is part of Saudi Arabia’s broader strategy to diversify its economy and meet the increasing global demand for lithium and other critical minerals.
Aramco has already identified lithium concentrations exceeding 400 parts per million in its operational areas, positioning the partnership to tap into significant resources. The joint venture will also focus on advancing cost-effective direct lithium extraction (DLE) technologies, improving the sustainability and efficiency of the extraction process.
Nasir K. Al-Naimi, President of Aramco Upstream, expressed that this venture aligns with Aramco’s commitment to advancing the global energy transition. “This collaboration will help unlock the Kingdom’s potential in energy transition minerals and support the growth of sustainable energy solutions,” Al-Naimi said. The joint venture is expected to bolster Aramco’s resource management capabilities and contribute to the Kingdom’s long-term energy and economic diversification goals.
Darryl Clark, Senior Vice President of Exploration at Ma’aden, highlighted the significance of the partnership in accelerating exploration of the Arabian Shield, an area rich in mineral resources. Ma’aden has already identified an estimated $2.5 trillion worth of minerals in the region.
Lithium is essential for the production of electric vehicles, energy storage, and renewable energy systems. With global demand for lithium having tripled in the past five years, the joint venture seeks to help Saudi Arabia meet its projected lithium needs, which are expected to increase twenty-fold between 2024 and 2030.
This proposed joint venture, which still requires regulatory approvals, was announced during the Future Minerals Forum in Riyadh and marks an important step in Saudi Arabia’s efforts to position itself as a key player in the global energy transition.
