Integrated energy and chemicals company Aramco and Ma’aden, a multi-commodity mining and metals company, have signed non-binding heads of terms outlining the potential formation of a minerals exploration and mining joint venture (JV) in Saudi Arabia.
The proposed JV will concentrate on extracting lithium from high-concentration deposits and advancing cost-effective direct lithium extraction (DLE) technologies.
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Lithium production could potentially commence by 2027.
This move is set to broaden Aramco’s reach into a neighbouring sector, utilising its technological advancements and proficiency in resource and data management.
The JV seeks to harness the country’s mineral resources, addressing the rising demand for lithium and other transition minerals on both a national and global scale.
The JV also aims to advance the country’s economic diversification and energy ambitions by harnessing a wealth of subsurface data and emerging technologies.
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By GlobalDataThe planned JV, which is subject to customary closing conditions including regulatory approvals, was announced during the Future Minerals Forum in Riyadh.
Aramco Upstream president Nasir K. Al-Naimi said: “This announcement reflects Aramco’s focus on positively contributing to the global energy transition. 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.”
Aramco has discovered multiple areas where lithium concentrations reach as high as 400ppm.
The JV is set to capitalise on Aramco’s experience and operations, drawing on its established infrastructure, drilling capabilities and more than 90 years of geological data in the region.
Over the past five years, global demand for lithium has surged threefold, with a compound annual growth rate forecasted to exceed 15% annually until 2035.
Ma’aden senior vice-president of exploration Darryl Clark said: “Ma’aden has been undertaking one of the world’s largest single-jurisdiction exploration programmes across the Arabian Shield, to unearth the estimated $2.5trn 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.”
The JV could play a crucial role in meeting the country’s projected lithium demand, which is expected to increase twentyfold between 2024 and 2030.
This growth would support the production of 500,000 electric vehicle batteries and the expansion of 110GW of renewable energy capacity.
Meanwhile, Ma’aden has announced the discovery of “promising” deposits of gold and copper at Wadi Al Jaww and Shayban in the Arabian Shield region.
The company intercepted multiple recoverable gold and copper grades in the exploration areas of the Shayban EL at Blocks 6 and 7.
Broad intersections of gold mineralisation at Wadi Al Jaww and gold and copper mineralisation at Jabal Shayban were indicated in updated assay results.
Both locations feature shallow mineralisation, ranging from 20m to 200m or deeper, and in all directions.
A 2022 study by the Ministry of Industry and Mineral Resources revealed that Saudi Arabia is home to more than 5,300 mining sites, valued at approximately $1.3trn (SR4.88trn), containing minerals such as bauxite, copper, gold, limestone, phosphate, silver and zinc, reported the National.
