Riyadh – Mubasher: Saudi Arabian Oil Company (Aramco) and Saudi Arabian Mining Company (Ma’aden) signed non-binding heads of terms to form a minerals exploration and mining joint venture (JV) in Saudi Arabia.
The proposed JV plans were announced on the sidelines of the fourth edition of the Future Minerals Forum (FMF), which kicked off in Riyadh on 14 January 2025, according to a press release.
Subject to regulatory approvals, the JV will focus on energy transition minerals, including extracting lithium from high-concentration deposits and boosting cost-effective direct lithium extraction (DLE) technologies.
Meanwhile, the commercial lithium production is expected to commence by 2027.
The planned JV aligns with Aramco’s objectives to reinforce the global energy transition. It would also unlock the potential of the Kingdom’s high-value mineral resources to meet the growing demand for lithium and other transition minerals both domestically and globally
Nasir Al Naimi, Aramco Upstream President, said: “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.”
“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,” Al Naimi mentioned.
Darryl Clark, Ma’aden Senior Vice President of Exploration, commented: “Ma’aden has been undertaking one of the world’s largest single-jurisdiction exploration programs across the Arabian Shield, to unearth the estimated $2.50 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,” Clark added.
It is worth highlighting that the total global demand for lithium has tripled over the past five years, and its compound annual growth rate is anticipated 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 twenty-fold between 2024 and 2030, backing around 500,000 electric vehicle batteries and 110 gigawatts (GW) of renewables.
