The Impact of Aramco’s Move to Invest in Lithium Production

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Nasir K. Al-Naimi, Upstream President at Aramco
Saudi Aramco, the largest oil company globally and producer of 10% of the world’s oil supply, is to expand its investments in lithium production

Saudi Aramco is a true giant of the energy industry.

Not only is it the world's largest oil company, but it produces almost 10% of the world’s oil supply.

But despite being a titan of oil and gas — an industry scrutinised for its impact on the environment — Aramco is diversifying to secure its own future and that of the planet.

As well as driving investment in R&D and working with carbon capture companies, Aramco is broadening its portfolio outside of tradition, fossil-based fuels.

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Introducing Aramco

State-owned petroleum and natural gas company Aramco is the national oil company of Saudi Arabia and is headquartered in Dhahran.

Headed up by CEO Armin H. Nasser, Aramco’s history stretches back almost 100 years to the 1930s, when it was established by a small group of intrepid explorers in the sands of the Saudi Arabian desert.

Amin H. Nasser, President and CEO of Saudi Aramco

Although its past is overwhelmingly based around oil and gas, Aramco is evolving and shifting its focus on making a positive impact on the energy transition.

This also plays a part in enabling and securing Saudi Arabia’s move towards a net-zero future.

Why is Aramco investing in lithium?

Saudi Aramco plans to boost investments in lithium production to establish a supply chain for the critical metal powering EV batteries.

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This is significant as China controls about two-thirds of the market in lithium processing. Dominance in this field is under threat as an increasing number of western and Middle Eastern companies — like Aramco — are investing in developing their own supply chains.

And the demand for lithium just keeps growing. Global lithium demand has tripled in the last five years and is projected to increase twentyfold between before the end of the decade.Aramco aims to capitalise on this surge in demand, driven primarily by EV production and renewable energy infrastructure expansion.

As well as this, Aramco’s move into the lithium space enables it to diversify its portfolio away from being predominantly oil based, reducing its dependence on fossil fuels. Investing in lithium aligns with the global shift towards sustainable energy technologies.

Aramco is working with Ma’aden, the largest multi-commodity mining and metals company in the Middle East and North Africa, to form a minerals exploration and mining joint venture in the Kingdom of Saudi Arabia to establish and expand its place in the lithium market.

“This announcement reflects Aramco’s focus on positively contributing to the global energy transition,” says Nasir K. Al-Naimi, Aramco’s Upstream President.

Nasir K. Al-Naimi, Aramco’s Upstream President

“The proposed joint venture 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’s place in the lithium supply chain

By working with Ma'aden, Aramco is strategically positioning itself as a significant player in the lithium supply chain. Leveraging its extensive geological expertise and existing infrastructure, it aims to become a key lithium producer.

The partnership with Ma’aden combines Aramco’s technological capabilities and subsurface knowledge with Ma’aden’s extensive mining expertise — meaning this collaboration is expected to accelerate lithium resource development and support Saudi Arabia’s broader economic diversification goals.

Dr Darryl Clark, Ma’aden’s Senior Vice President of Exploration

Dr Darryl Clark, Ma’aden’s Senior Vice President of Exploration, says: “Ma’aden has been undertaking one of the world’s largest single-jurisdiction exploration programmes across the Arabian Shield, to unearth the estimated US$2.5tn mineral endowment.

“This proposed joint venture 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.” 


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