In a recent interview, a senior minister affirmed Saudi Arabia’s commitment to securing lithium from international markets to support the production of electric vehicle (EV) batteries, highlighting ongoing efforts to diversify the kingdom’s economy.
Traditionally reliant on oil, Saudi Arabia has undertaken substantial investments to position itself as a center for EV manufacturing, aligning with Crown Prince Mohammed Bin Salman’s vision for economic diversification.
Minister of Industry and Mineral Resources, Bandar Alkhorayef, emphasized the significance of lithium in the battery supply chain during discussions at the World Economic Forum’s special meeting in Riyadh. “Lithium is a vital mineral crucial for battery production; its absence would be unimaginable,” Alkhorayef stated.
Saudi Arabia has initiated exploration into extracting lithium from seawater and salinated discharges from its oil fields in collaboration with Aramco.
However, the success of these endeavors remains uncertain. Alkhorayef acknowledged encouraging signs but emphasized the need for further exploration, citing the importance of deposit size and concentration for economic viability.
Last year, Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), and its mining flagship Ma’aden established a joint venture named Manara Minerals to pursue mining assets abroad.
Alkhorayef expressed confidence in meeting Saudi Arabia’s resource demands, whether through domestic products or imports facilitated by investments such as Manara’s.
Seeking to bolster international partnerships, Saudi Arabia has approached Chile’s mining ministry regarding potential investments in the South American nation’s mining sector.
While Chilean officials have remained cautious in disclosing specifics, Alkhorayef indicated openness to exploring opportunities without confirming any ongoing discussions regarding lithium licenses.
As Saudi Arabia advances its efforts to diversify its economy and position itself as a key player in the EV industry, securing a stable lithium supply emerges as a critical objective, reflecting the kingdom’s strategic vision for sustainable economic development.
