Mining Aramco-Ma’aden JV to mine lithium in Saudi Arabia By Pramod Kumar, Edmund Bower January 16, 2025, 12:09 PM Olivier Asselin/Alamy via Reuters Connect Saudi Aramco has already identified several areas with a high lithium concentration JV to accelerate exploration Energy-related mining prioritised Lithium deposits identified Saudi Aramco and Ma’aden, two listed companies on the Saudi bourse, will launch a joint venture for minerals exploration and mining in the kingdom. The proposed venture will focus on energy transition minerals, which includes lithium extraction from high-concentration deposits and use of cost-effective direct lithium extraction technologies. “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”, said Darryl Clark, Ma’aden senior vice President of exploration, in a press statement. Commercial lithium production is estimated to commence by 2027. The new venture is likely to benefit from Aramco’s existing infrastructure, drilling operations and decades-old geological data. The Saudi energy giant has already identified several areas with a high lithium concentration of up to 400 parts per million. Aramco has also partnered with King Abdullah University for Science and Technology to develop lithium extraction technology. Researchers from the university published a paper in Science journal in September outlining a new method to extract lithium from brine containing as little as 20 parts per million. Speaking to Reuters on Wednesday, Saudi Arabia’s mining minister, Bandar Alkhorayef, said the project to extract lithium was “promising, but not yet commercially viable”. Lithium is a major component in the energy transition chain, supporting fast-growing sectors such as electric vehicles (EVs), energy storage and renewables. The mineral’s global demand has tripled over the past five years, with the market expected to grow at a compound annual growth rate of 7.2% through to 2035. However, supply has increased at an even greater rate over that period, causing the spot price of lithium to drop by more than 85% since late 2022. Saudi Arabia grants exploratory rights to six mining sites Critical minerals become a Middle East battleground Saudi Arabia secures $9bn to unlock mining potential The joint venture is expected to meet the kingdom’s estimated lithium demand, slated to surge twenty-fold between 2024 and 2030 and support an estimated 500,000 EV vehicle batteries and 110 gigawatts of renewables. The planned venture is, however, subject to regulatory approvals. No financial details were released. The announcement was one of a slew coinciding with the Future Minerals Forum in Riyadh. Ma’aden on Wednesday also announced the discovery of “multiple intercepts of recoverable gold and copper grades” in exploratory sites at Wadi al Jaww and Jabl Shayban. This year Saudi Arabia plans to offer auctions for exploration rights to a combined 50,000 sq km of land. Last year, officials announced the potential mineral wealth in the country to be worth $2.5 trillion.