Saudi Arabia is advancing its ambitions to become a major player in the electric vehicle (EV) supply chain by exploring lithium production projects.
The initiatives align with the country’s broader strategy to diversify its economy and prepare for a post-oil future.
Khalid Al-Mudaifer, Saudi Arabia’s Vice Minister for Mining, revealed in a recent interview that the kingdom is testing lithium production methods through two pilot projects.
These efforts are part of a larger plan to develop essential materials for EV batteries. Additional ventures to bolster lithium production are also in the pipeline.
In parallel, Saudi Aramco, the state energy giant, is collaborating with the King Abdullah University of Science and Technology (KAUST) on a joint project to extract lithium from brine sourced from oilfields.
The company is currently evaluating the presence and concentration of lithium in the brine, as well as the feasibility of its extraction.
“We are targeting lithium production sufficient to manufacture one million batteries annually,” Al-Mudaifer stated. The produced lithium will cater to both domestic and international markets, further enhancing Saudi Arabia’s role in the global battery supply chain.
The kingdom is also investing in other critical minerals needed for battery technologies. Manara Minerals Investment Co., a state-run mining investment firm, is focused on developing nickel processing capabilities within Saudi Arabia.
Additionally, studies are underway to assess the potential for graphite production. Both nickel and graphite, which can also be synthesized through oil-refining processes, are key components in battery manufacturing.
Saudi Arabia’s strategy extends beyond mining. The country is leveraging its resources to develop new industries, including technology and tourism, while shifting more oil toward chemical production.`
Efforts to expand access to critical minerals domestically and internationally aim to establish a robust metals-processing and battery industry. Simultaneously, the government is working to make its mining sector more attractive to global investors, encouraging international firms to explore and develop its untapped mineral deposits.
Through these initiatives, Saudi Arabia is positioning itself as a key player in the energy transition, laying the groundwork for a sustainable and diversified economy.
