Aramco and Ma’aden have agreed in principle to form a minerals exploration and mining joint venture in Saudi Arabia that will focus on energy transition minerals, including extracting lithium from high-concentration deposits and advancing cost-effective direct lithium extraction technologies. Commercial lithium production could potentially start by 2027.

The proposed JV is expected to extend Aramco's capabilities into an adjacent sector, leveraging its technological innovation and skills in resource and data management.

According to a non-binding heads of terms signed by the parties, the JV would seek to unlock the potential of the kingdom's high-value mineral resources, with the aim of helping meet growing demand for lithium and other transition minerals both domestically and globally.

It is expected to further harness natural resources utilizing a wealth of subsurface data, as well as emerging technologies, to advance the kingdom's economic diversification and energy ambitions.

State-owned Ma'aden, headquartered in Riyadh, is the largest multi-commodity mining and metals company in the Middle East and North Africa.

Huge potential

Aramco says the kingdom has significant potential for extracting energy transition minerals. As part of its operations, Aramco has identified several areas with a high lithium concentration of up to 400 parts per million.

The JV  would benefit from Aramco's significant expertise and operations, including the use of existing infrastructure, industry-leading drilling operations, and more than 90 years of geological data in its area of operations.

“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,” says Aramco Upstream president Nasir K. Al-Naimi. “We expect that this partnership will leverage the world's leading upstream enterprise to apply significant low-cost advantages, industry experience, technological innovation, accumulated subsurface knowledge, and an integrated supply chain ecosystem, with a view to meeting the kingdom and potentially the world's projected lithium demand." 

Darryl Clark, Ma'aden’s senior vice president for exploration, adds: "Ma'aden has been undertaking one of the world's largest single-jurisdiction exploration programmes across the Arabian Shield, to unearth the estimated US$2.5 trillion mineral endowment. This proposed JV would enable us to accelerate exploration of the Arabian Platform, combining Aramco's vast knowledge of the area with Ma'aden's extensive mining and exploration expertise." 

Rising demand

Lithium is a fundamental component of the energy transition, essential for production in fast-growing sectors such as electric vehicles, energy storage, and renewables. The total global demand for lithium has tripled over the past five years, and its compound annual growth rate is expected to exceed 15% per annum through 2035.

The JV could potentially help meet the kingdom's forecasted demand for lithium, which is expected to grow 20-fold between 2024 and 2030, supporting an estimated 500,000 electric vehicle batteries and 110 gigawatts of renewables.

The planned JV, subject to customary closing conditions including regulatory approvals, was announced during the Future Minerals Forum ( January 14-16 ) in Riyadh.