Aramco, one of the world’s leading integrated energy and chemicals companies, and Ma’aden, the largest multi-commodity mining and metals company in the Middle East and North Africa, today announced the signing of a non-binding letter of intent to establish a joint venture Exploration and production of minerals in the Kingdom of Saudi Arabia. The proposed joint venture would focus on minerals for the energy transition, including the extraction of lithium from highly concentrated deposits and the further development of cost-effective direct lithium extraction (DLE) technologies. Commercial lithium production could begin by 2027.
- Collaboration leverages Aramco’s extensive geoscience data, digital capabilities and subsurface knowledge, as well as Ma’aden’s decades of mining experience
- Aramco identifies promising lithium concentrations of over 400 parts per million in its existing operating area
- Potential collaborations could begin commercial lithium production by 2027
- Companies sign letters of intent to explore new opportunities in transition minerals
The proposed joint venture is intended to expand Aramco’s capabilities into an adjacent sector and leverage its technological innovations and capabilities in resource and data management. It aims to unlock the potential of the Kingdom’s high-quality mineral resources and help meet growing demand for lithium and other transition minerals both domestically and globally. The joint venture is expected to further exploit natural resources using a wealth of underground data as well as new technologies to advance the Kingdom’s economic diversification and energy ambitions.
The Kingdom has significant potential for extracting minerals for the energy transition. For example, Aramco’s work has identified several areas with high lithium concentrations of up to 400 parts per million. The joint venture is expected to benefit from Aramco’s significant expertise and operations, including leveraging existing infrastructure, industry-leading drilling and more than 90 years of geological data in its area of operations.
Nasir K. Al-Naimi, Aramco Upstream President, said: “This announcement shows that Aramco is focused on making a positive contribution to the global energy transition. The proposed joint venture will enable the extraction of minerals for the energy transition, making a significant contribution to the growth of more sustainable energy solutions while diversifying our portfolio for a lower carbon future. We expect this partnership will enable the world’s leading upstream company to leverage significant cost advantages, industry experience, technological innovation, accumulated subsurface knowledge and an integrated supply chain ecosystem to meet the Kingdom’s and potentially the Kingdom’s forecast lithium demand to cover the whole world.”
Darryl Clark, Ma’aden Senior Vice President of Exploration, sagte: “Ma’aden has conducted one of the world’s largest exploration programs in a single area in the Arabian Shield to develop an estimated $2.5 trillion mineral reserve. The proposed joint venture would enable us to accelerate exploration of the Arabian Platform by combining Aramco’s extensive knowledge of the area with Ma’aden’s extensive mining and exploration expertise.”
Lithium is a fundamental part of the energy transition, essential for production in fast-growing sectors such as electric vehicles, energy storage and renewable energy. Total global demand for lithium has tripled over the past five years and the compound annual growth rate is expected to exceed 15% by 2035. The joint venture could help meet the Kingdom’s forecast demand for lithium, which is expected to increase twenty-fold between 2024 and 2030, supporting an estimated 500,000 electric vehicle batteries and 110 GW of renewable energy.
The proposed JV, which is subject to customary closing conditions including regulatory approvals, was announced during the Future Minerals Forum in Riyadh.
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