Saudi Arabia is accelerating its push into minerals essential for the energy transition as Aramco and Ma’aden formalize a joint venture to explore, mine, and potentially scale lithium and other energy metals. The agreement marks a strategic step for the kingdom’s broader aim to diversify its economy, expand its metals sector under Vision 2030, and reinforce its position in global battery materials supply chains. The collaboration integrates cutting-edge mining innovation, university-backed research, and state-backed industrial scale-up, with a clear emphasis on leveraging local resources and capabilities to meet rising demand for lithium and related minerals.
Strategic Alliance to explore and mine energy transition minerals in Saudi Arabia
Aramco and Ma’aden have agreed to establish a joint venture dedicated to the exploration and mining of minerals tied to the energy transition, with a pronounced focus on lithium. The venture is designed to identify, extract, and develop lithium from deposits in Saudi Arabia that exhibit high concentration levels, as well as to advance cost-effective direct lithium extraction technologies. This initiative aligns with the kingdom’s ambition to broaden its role in mining and position itself as a reliable supplier of critical minerals for global clean-energy ecosystems.
The plan envisions commercial lithium production beginning by 2027, with Aramco highlighting that lithium-bearing formations in the country can reach concentrations as high as 400 parts per million. In Aramco’s view, this concentration potential supports a viable pathway to scalable production while integrating advanced, lower-cost extraction methods. The company underscored that the venture will enable the extraction of energy transition minerals and contribute meaningfully to the development of sustainable energy solutions, all while diversifying its portfolio toward a lower-carbon future. This focus on mining for energy transition minerals sits squarely within Aramco Upstream’s broader goals of technological innovation, cost discipline, and deep subsurface know-how, which the company believes will help meet both domestic and, potentially, global lithium demand as supply chains adjust to rapid electrification trends.
On the Saudi government side, Bandar Alkhorayef, the Minister of Industry and Mineral Resources, emphasized the collaborative nature of the effort by noting that Aramco is partnering with KAUST—the King Abdullah University of Science and Technology—to pilot the lithium mining project. This partnership signals a deliberate bridging of industry, government, and academia to accelerate the practical development and commercialization of lithium resources in the region. The collaboration is further reinforced by the involvement of Lithium Infinity, also known as Lihytech, a KAUST-origin startup, which will lead the extraction project in conjunction with Ma’aden and Aramco. The arrangement showcases how state-backed industry players and premier research institutions can co-create value through early-stage exploration, pilot-scale trials, and eventual ramp-up of production capacity.
To ensure execution clarity and governance, the prospective joint venture will rely on Aramco’s upstream strengths—ranging from cost efficiency and advanced technology to extensive subsurface knowledge—to respond to the kingdom’s mineral ambitions and to address anticipated domestic and international lithium demand. The collaboration will also capitalize on Ma’aden’s mining expertise, broad operational footprint, and strategic market insights, consolidating a comprehensive capability set designed to unlock Saudi Arabia’s lithium potential alongside other energy transition minerals. The overarching objective is not only to secure critical inputs for batteries and renewable energy infrastructure but also to strengthen Saudi Arabia’s position as a regional hub for mining innovation, processing, and sustainable metal production.
Lithium focus amid a fast-evolving global demand landscape
The global demand for lithium—an essential component in batteries for electric vehicles, laptops, and smartphones—has surged dramatically in recent years. Over the past five years, the world has seen lithium demand triple, a trajectory driven by the rapid adoption of electric mobility, grid storage, and portable consumer electronics. Market dynamics point to a continued expansion, with projections indicating a compound annual growth rate (CAGR) that could exceed 15 percent per year through 2035. Against this backdrop, Saudi Arabia’s lithium strategy gains additional relevance as the kingdom seeks to secure a meaningful share of an increasingly tight and strategic supply chain for energy storage materials.
Within Saudi Arabia, Aramco has forecast a substantial rise in lithium consumption, anticipating a twenty-fold increase in domestic lithium demand between 2024 and 2030. This surge reflects the broader push toward electrification and energy diversification across the kingdom and aligns with ambitious targets for renewable energy deployment and decarbonization. Specifically, Aramco has projected that the country’s lithium-driven demand will support the production of about 500,000 electric vehicle (EV) batteries and contribute to around 110 gigawatts of renewable energy capacity, underscoring lithium’s central role in the national energy transition. The company’s statements point to a strategic expectation that Saudi Arabia will emerge as a pivotal player not only in lithium mining but also in the broader battery materials ecosystem that underpins modern energy infrastructure.
A key aspect of the lithium strategy highlighted by Aramco is the identification of high-concentration lithium zones within the country, with concentrations reaching up to 400 parts per million. This concentration benchmark is significant because it informs the feasibility and potential cost structure of domestic lithium production. The plan envisions leveraging Aramco’s upstream know-how and cost-conscious approach to translate these geological advantages into commercially viable operations. The emphasis on cost-effective, advanced extraction technologies—particularly direct lithium extraction (DLE) techniques—reflects an intent to optimize resource recovery while maintaining economic competitiveness in an industry characterized by capital intensity and evolving processing methods. In this context, the Li‑based ecosystem in Saudi Arabia could become a cornerstone of a diversified energy portfolio, reducing exposure to global supply disruptions and enhancing resilience for a nation pursuing large-scale energy transition investments.
In terms of strategic outcomes, the joint venture’s lithium focus is expected to support broader sustainability and decarbonization goals by contributing to the regional and global supply of battery-grade materials. Aramco’s leadership in upstream operations, combined with Ma’aden’s mining scale and KAUST’s research capabilities, positions the project to advance new technologies, improve recovery rates, and potentially lower the environmental footprint of lithium extraction in the region. The ambition to pilot and scale lithium mining within Saudi Arabia also aligns with Vision 2030’s objective to diversify the economy, expand high-value industries, and cultivate a domestic innovation ecosystem that integrates research institutions, industry players, and policymakers.
KAUST collaboration and Lihytech’s leading role in the lithium extraction project
A notable pillar of the initiative is the collaboration with KAUST, which stands at the intersection of academic excellence, industry collaboration, and applied research. The partnership is designed to accelerate the development of lithium mining technologies, test new extraction processes, and translate laboratory breakthroughs into field-ready solutions. KAUST’s involvement signals a deep commitment to evidence-based approaches, rigorous testing, and scalable innovation across the value chain—from exploration and extraction to processing and potential downstream refinement.
Bandar Alkhorayef highlighted the strategic alignment between Aramco and KAUST, noting that the lithium project’s pilot phase will leverage KAUST’s scientific expertise and infrastructure. This collaboration is positioned to help de-risk early-stage mining activities, validate extraction methods, and optimize operational parameters before broader deployment. The engagement with KAUST underscores a broader trend in which national laboratories and leading universities play an instrumental role in accelerating energy transition technologies, thereby reducing technical risks and accelerating time-to-market for critical minerals.
Leading the extraction project within KAUST’s ecosystem is Lithium Infinity, the startup widely recognized as Lihytech. Lihytech originated from KAUST and has been designated to spearhead the lithium extraction initiative in partnership with Ma’aden and Aramco. The role of Lihytech reflects Saudi Arabia’s strategy to cultivate homegrown technological leadership in the minerals space, leveraging the university’s entrepreneurship and innovation pipeline to nurture start-ups capable of delivering competitive, scalable solutions for resource recovery. This arrangement illustrates a model in which an accelerator-driven start-up is integrated into a major national venture, enabling rapid iteration, targeted research, and the practical deployment of DLE methods that can be customized to the region’s geological contexts.
The coordination between Aramco, Ma’aden, KAUST, and Lihytech is expected to cover the entire value chain of lithium mining—from geoscience surveys and resource delineation to pilot-scale extraction and eventual commercialization. The cross-institutional collaboration is designed to maximize synergies: Aramco’s technical prowess in upstream operations, Ma’aden’s extensive mining network, KAUST’s research infrastructure and talent pool, and Lihytech’s agility and entrepreneurial approach. This integrated model aims to accelerate technology transfer, optimize process economics, and support the development of a robust local ecosystem capable of sustaining long-run lithium production and processing at scale. The outcome is envisioned as a solid foundation for the kingdom’s future energy storage materials industry, with potential spillover benefits into other metals and minerals critical to modern energy systems.
Ma’aden’s strategic move to acquire Alba stake as part of Vision 2030 expansion
In parallel with the lithium initiative, Ma’aden advanced a major strategic move to acquire a substantial stake in Aluminium Bahrain (Alba). Ma’aden agreed to purchase SABIC’s 20.62 percent stake in Alba, marking a significant step in Saudi Arabia’s broader strategy to accelerate the growth of its metals and mining sectors under Vision 2030. The transaction is part of a comprehensive plan to consolidate and expand the kingdom’s downstream metal capabilities, leveraging Alba’s established aluminum production platform to strengthen domestic and regional supply chains.
The anticipated sale proceeds for this transaction are expected to fall within a range of approximately $963.25 million to $1.06 billion, which translates to roughly 363 million to 398 million Bahraini dinars (BHD) given current exchange rates. This financial window indicates a meaningful level of capital being redirected into strategic assets that complement Saudi Arabia’s metal production ambitions, while also signaling confidence in Alba’s long-term value generation potential. The stake acquisition aligns with Ma’aden’s broader objective of diversifying its asset base, expanding processing capabilities, and fostering a more resilient metals portfolio that supports industrial growth and job creation within the kingdom.
From a strategic standpoint, Ma’aden’s Alba investment fits within the broader Vision 2030 framework by strengthening downstream aluminum capacity, enabling greater vertical integration, and enhancing the kingdom’s ability to secure critical materials domestically. Alba’s established operations and regional footprint offer a stable platform for expanding aluminum production, refining capabilities, and potentially exporting finished products to neighboring markets. The move complements Saudi Arabia’s lithium and energy materials initiatives by reinforcing the country’s ability to produce a diversified suite of minerals and metals essential to modern infrastructure, manufacturing, and energy systems. Taken together, the lithium venture and the Alba acquisition underscore a coordinated strategy to broaden the kingdom’s industrial base, attract high-value investments, and accelerate the evolution of Saudi Arabia into a hub for energy transition minerals processing and metal manufacturing.
Implications for Vision 2030, energy security, and global markets
The combined developments—Saudi Arabia’s lithium exploration and potential production, the KAUST-led innovation ecosystem, the Lihytech leadership in extraction technology, and Ma’aden’s Alba investment—signal a holistic approach to building a resilient, technology-driven minerals economy. By focusing on energy transition minerals and leveraging local capabilities, the kingdom aims to strengthen its own energy security while contributing to global supply chains that are increasingly constrained by demand for batteries and storage solutions. The lithium initiative, in particular, reflects an emphasis on cost efficiency, technological innovation, and sustainable practices that could set a benchmark for future mining ventures in the region.
From a macroeconomic perspective, the move aligns with Vision 2030’s broader goals of economic diversification, job creation, and knowledge-driven growth. The partnerships with leading research institutions and cutting-edge startups indicate a long-term commitment to nurturing an indigenous ecosystem capable of delivering advanced mining technologies, scalable processing, and competitive export-oriented production. The integration of Aramco’s upstream expertise, Ma’aden’s mining footprint, KAUST’s research capabilities, and Lihytech’s entrepreneurial drive points to a collaborative model that can accelerate technology transfer, improve recovery rates, and reduce environmental impact as new lithium and related mineral projects scale up.
The global lithium market context makes Saudi Arabia’s strategy particularly noteworthy. As demand for energy storage materials continues to rise in tandem with electric vehicle adoption, the ability to secure a steady, country-specific supply of high-concentration lithium can enhance regional stability in processing and manufacturing. The collaboration’s emphasis on pilot deployments, cost-effective extraction methods, and scalable production aligns with the demands of energy transition timelines, while the Alba stake purchase signals a broader commitment to creating a comprehensive metals and minerals platform that can serve both industrial customers and national strategic interests. In practical terms, the outcomes of these initiatives could influence pricing dynamics, supply chain resilience, and investment patterns across the Middle East and the broader North Africa region, with potential ripple effects into global markets seeking diversified, geopolitically stable sources of critical minerals.
The strategic narrative also highlights how Saudi Arabia plans to balance industrial ambition with sustainable development. By pursuing energy transition minerals alongside established metals production, the kingdom is signaling a dual-track approach: maintaining leadership in existing metal industries while expanding into high-growth, technology-enabled mineral sectors that will underpin future energy systems. If successful, the joint venture and associated projects could create jobs, foster local expertise, attract foreign investment, and stimulate ancillary industries—from equipment manufacturing to research services—thereby reinforcing the country’s long-run economic trajectory. Moreover, the collaboration illustrates how public-private partnerships, underpinned by world-class research institutions, can drive large-scale projects that mainstream innovation, resource stewardship, and responsible mining practices.
Conclusion
Saudi Arabia’s strategic move to launch a joint venture between Aramco and Ma’aden to explore and mine energy transition minerals, with a strong lithium focus, marks a significant milestone in the kingdom’s industrial diversification and energy transition agenda. The initiative is anchored by a robust ecosystem that includes KAUST’s research capabilities, the leadership of Lihytech in extraction technology, and a government-backed framework designed to accelerate commercialization from exploration through to production by 2027. The collaboration underscores the country’s ambition to meet soaring lithium demand, support hundreds of thousands of EV batteries, and contribute substantial capacity to renewable energy rollouts while reinforcing domestic technological leadership.
In parallel, Ma’aden’s decision to acquire SABIC’s stake in Alba embodies a complementary pillar of Vision 2030—strengthening Saudi Arabia’s metals ecosystem, expanding downstream capabilities, and reinforcing the kingdom’s strategic portfolio with high-value aluminum assets. Together, these actions illustrate a coordinated, long-term strategy to build a diversified, resilient economy anchored in advanced mining technologies, homegrown innovation, and integrated supply chains. As Saudi Arabia advances these initiatives, the global market will be watching the progress of pilot programs, technology commercialization, and the pathway to scaling lithium production within a balanced, environmentally conscious framework. The coming years will reveal how effectively this integrated approach translates into sustained economic growth, job creation, and a secure, diversified future for the kingdom’s mineral and energy portfolios.