Aramco is planning a joint venture with Ma’aden to focus on transition minerals.

Aramco, a global leader in energy and chemicals, and Ma’aden, the largest multi-commodity mining and metals company in the MENA region, have signed non-binding Heads of Terms to establish a joint venture (JV) for minerals exploration and mining in Saudi Arabia. The proposed JV will focus on energy transition minerals, particularly lithium extraction from high-concentration deposits, and advancing cost-effective direct lithium extraction (DLE) technologies, with commercial lithium production potentially beginning by 2027.

This JV would extend Aramco’s expertise into a new sector, combining its technological innovations and resource management skills to tap into the Kingdom’s valuable mineral resources. The goal is to meet the increasing global and domestic demand for lithium and other transition minerals. Additionally, the venture aims to support the Kingdom’s economic diversification and energy goals by leveraging advanced technologies and extensive subsurface data.

Saudi Arabia has significant potential for extracting energy transition minerals. Aramco has already identified areas with high lithium concentrations of up to 400 parts per million. The JV will benefit from Aramco’s experience, infrastructure, and over 90 years of geological data in the region.

Nasir K. Al-Naimi, Aramco’s Upstream President, commented, “This partnership aligns with Aramco’s commitment to supporting the global energy transition. The JV will contribute to the sustainable energy sector and diversify our portfolio, aiming to meet the Kingdom’s and the world’s lithium demand using Aramco’s low-cost advantages, technological innovation, and integrated supply chain.”

Darryl Clark, Ma’aden’s Senior Vice President of Exploration, added, “Ma’aden has one of the largest exploration programs globally, and this JV will accelerate exploration on the Arabian Platform, combining Aramco’s regional knowledge with Ma’aden’s mining expertise.”

Lithium is vital for the energy transition, driving sectors like electric vehicles, energy storage, and renewable energy. Global demand for lithium has tripled over the past five years, and is expected to grow at a compound annual rate of over 15% through 2035. The JV could help meet Saudi Arabia’s lithium demand, which is forecasted to increase twenty-fold between 2024 and 2030, supporting electric vehicle batteries and renewable energy projects.

The JV is subject to regulatory approvals and other closing conditions and was announced at the Future Minerals Forum in Riyadh.