Saudi Arabia's Lithium Ambitions: A Promising Prospect

Saudi Arabian oil giant Aramco's lithium extraction project, led by KAUST's start-up Lihytech, is promising but not yet viable. Saudi Arabia is exploring mining investments in Pakistan's Reko Diq through Manara Minerals, with financing from the Saudi Development Fund, to diversify its oil-dependent economy.

Saudi Arabian state oil giant Aramco's venture into lithium extraction, in collaboration with the King Abdullah University for Science and Technology (KAUST), shows great promise, according to the kingdom's Mining Minister, Bandar Alkhorayef. However, the project is not yet commercially viable. This initiative is driven by Lihytech, a start-up from KAUST, with collaboration from Saudi mining company Ma'aden and Aramco.

Lithium, an essential element for the batteries powering electric cars, laptops, and smartphones, is being targeted by national oil companies in Saudi Arabia and the United Arab Emirates for extraction from oil runoffs. Additionally, Saudi Arabian mining company Manara Minerals is considering a significant investment in Pakistan's Reko Diq mine, which could lead to a contribution of over $100 million from the Saudi Development Fund to improve Pakistan's mining infrastructure.

In efforts to diversify from an oil-dependent economy, Saudi Arabia has set up Manara, a joint venture between Ma'aden and the Public Investment Fund, aimed at expanding overseas assets. Executives from Manara engaged in discussions last year in Pakistan for potential investment in Reko Diq, one of the world's largest undeveloped copper-gold mines, managed by Barrick Gold and the Pakistan government.

(With inputs from agencies.)