The GCC is leading the region’s electric vehicle (EV) charge, with Saudi Arabia at the forefront. Securing a stable supply of lithium is crucial to fostering early EV adoption and production across the Kingdom. Mining lithium on a large scale to meet the rising global demand has become a key economic objective for Saudi Arabia.

A new joint venture between Saudi Aramco and the Saudi Arabian Mining Company (Ma’aden) aims to start commercial lithium production as early as 2027. The two Saudi-listed companies signed a non-binding agreement outlining the initial terms for mineral exploration and the mining joint venture in Saudi Arabia. The announcement was made at the Future Minerals Forum in Riyadh.

This strategic collaboration focuses on extracting lithium from high-concentration deposits and advancing cost-effective direct lithium extraction technologies. Emphasizing the potential of energy transition minerals like lithium, the Kingdom aims to extend its research and production capabilities into emerging sectors such as electric vehicles (EVs), energy storage, and renewable energy.

Recent data reveals that global demand for lithium has tripled in the past five years, with an annual compound growth rate expected to exceed 15% through 2035. Currently, Aramco has identified several sites that feature lithium concentrations of up to 400 parts per million.

The Aramco-Ma’aden joint venture is expected to strengthen the Kingdom’s global supply chain for emerging energy assets like lithium. Analysts forecast Saudi Arabia’s lithium demand will grow twenty-fold between 2024 and 2030, fueling the adoption of electric vehicles (EVs) in the Kingdom. This growth is projected to power around 500,000 EV batteries and 110 GW of renewable energy.