INTERVIEW: Saudi Aramco, Ma’aden planned JV targets commercial-scale lithium production by 2027

The planned joint venture between Saudi Aramco and miner Ma'aden plans to gradually scale up its lithium extraction capabilities through phased development and targets commercial-scale lithium production by 2027, Aramco Upstream President Nasir K. Al-Naimi told S&P Global Commodity Insights in an interview.

He said Aramco was starting with a pilot project in 2025 to evaluate a high potential area.

"In parallel, we plan to pilot new technology in one of our facilities at the Ghawar oil field that will focus on proving the viability of direct lithium extraction," he said.

Al-Naimi said the initial timeline would focus on field testing and technology validation and, following this, it planned to enter a phased development to scale operations and target commercial-scale lithium production by 2027.

"Our expertise in resource management, geophysics, advanced engineering, and subsurface mapping can allow us to efficiently scale lithium extraction in more sustainable manners. These core skills, which have helped Aramco become a leader in oil and gas, can now be applied to mineral extraction," he said.

The plan to form a JV focusing on mineral exploration and extraction activities within Saudi Arabia was announced by Aramco and Ma'aden in a Jan. 15 joint press statement.

Al-Naimi said the JV had decided to focus initially on lithium as global demand is projected to surge, with a potential shortfall of 1.42 million mt by 2030, driven by the rollout of electric vehicles and energy storage.

"After the lithium market price corrected in 2024, we see a strong growth curve ahead," he said, adding that, with lithium being a key component for energy storage, EV batteries and grid-scale energy solutions, the timing of the JV aligns with global energy trends and Aramco's long-term diversification plans, which in turn is aligned with Saudi Arabia's own long-term vision.

Al-Naimi noted that Aramco had gathered vast amounts of geological data from across Saudi Arabia through extensive seismic surveys and deep core samples over its more than 90 years of oil and gas exploration.

"This provides an advantage in Aramco's ability to leverage its deep knowledge of the geology, existing infrastructure, and extensive experience in resource extraction," he said.

DLE Technology

"We are using advanced, more sustainable extraction technologies such as DLE, which offers higher efficiency and lower greenhouse gas emissions than traditional methods," Al-Naimi said.

"This technological edge, combined with our focus on scalable operations, our decades-worth of geological knowledge in the area we operate, and long-term sustainability strategy, can enable us to stand out and compete effectively in the market," he added.

Al-Naimi said Ma'aden's mining expertise complements Aramco's resources and technological innovations, while technology companies SLB, LightOre and LiHyTech bring advanced technologies in lithium extraction, which he said would be "crucial to our joint efforts to develop scalable, cost-effective solutions for the global energy market."

He said Saudi Arabia's lithium deposits were lithium brine, describing DLE technology as a chemical process used to extract lithium from brines more efficiently than traditional mining methods.

"It allows for greater lithium recovery, with a lower greenhouse gas emissions and minimal water usage. This is important because it can reduce the impact typically associated with traditional mining," he said.

"We plan to pilot new technology in one of our facilities at the Ghawar oil field that will focus on proving the viability of DLE.

In 2024, LiHyTech, a King Abdullah University of Science and Technology startup, and Aramco partnered to provide brine from Aramco's oil fields to test new technology involving DLE of brine in oil fields and seawater.

LiHyTech also previously received an initial investment of $6 million from Ma'aden and the KAUST Innovation Fund.

Platts, part of S&P Global Commodity Insights, assessed battery grade lithium carbonate at $10,200/mt and hydroxide at $9,900/mt CIF Europe on Jan. 17, 2025, down 35% and 38% respectively since the start of 2024.