Abu Dhabi plans lithium plant to support EV growth

Wam

• ‘Lithium is the new oil’
• $1.4bn investment
• Mines in Zimbabwe

A $1.4 billion lithium processing plant is being planned in Abu Dhabi by Kezad Group and Titan Lithium, a UAE-based company, to support the region’s fledgling electric vehicle (EV) industry.

Kezad (Khalifa Economic Zones Abu Dhabi) and Titan have signed a 50-year land lease agreement for the AED5 billion plant.

The plant, to be developed in three stages, will produce battery-grade lithium carbonate and lithium hydroxide for battery makers and EV manufacturers globally. 

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Titan Lithium said the plant represents a “critical turning point” in the UAE’s development as a player in the global lithium processing market.

Once established, the plant will import about 150,000 tonnes of lithium a year from Titan’s mines in Zimbabwe for processing through Khalifa Port in Abu Dhabi.

Vaibhav Jain, founder and president of Titan Lithium Industries, said: “Lithium is the new oil, and through this project, we are positioning the UAE, and specifically Abu Dhabi, as a pivotal hub in the lithium processing domain.”

As the world moves to renewable energy sources, the role of lithium as a key component will become increasingly important.

The availability of processed lithium is crucial for the manufacturing of battery packs used in EVs, a rapidly growing sector in the global push for sustainable energy.

Sales of passenger EVs in the UAE in 2023 are predicted to have been around 22,000, a 32 percent increase from an estimated 16,400 in 2022.

Longer-term calculations from analysts at BMI suggest the total number of EVs will exceed 370,000 by 2032, representing 11 percent of the UAE’s passenger vehicles.

The UAE, as a part of its commitment to achieving net-zero emissions target, has pledged to increase the share of electric and hybrid vehicles to 50 percent of all vehicles sold by 2050.

Mohamed Al Khadar Al Ahmed, CEO of Kezad Group, said the lithium processing plant aligns with the UAE’s broader goals of innovation and sustainable development.

“We welcome Titan Lithium Industries to Kezad and look forward to the project’s significant contribution to the UAE’s strategic vision of diversifying its economy and reinforcing its position in the global market,” he said.