Saudi Arabia's Lithium Ambitions: A Step Toward Economic Diversification

Aramco's lithium extraction venture, driven by the startup Lihytech, aims at developing commercially viable production methods by 2027 with collaborations with Saudi mining firms. The initiative reflects Saudi Arabia's efforts to diversify its economy, alongside investments like Manara Minerals' potential infusion in Pakistan's mining sector.

Saudi Arabia's state oil giant Aramco is making strides in lithium extraction, a venture deemed 'promising but not yet commercially viable' according to the Kingdom's mining minister. Partnering with King Abdullah University for Science and Technology, the initiative is spearheaded by Lithium Infinity (Lihytech), a startup from the university, with support from Saudi mining enterprise Ma'aden.

The collaboration sees Aramco and Ma'aden signing a non-binding term sheet aiming for a minerals exploration and mining joint venture, focusing on energy transition minerals with lithium being a prime target. Plans for commercial production are hopeful by 2027, using innovative direct lithium extraction technologies.

Further diversifying its economy away from oil, Saudi Arabia looks to invest in overseas mining, such as Manara Minerals' interest in Pakistan's Reko Diq mine, backed by potential contributions from the Saudi Development Fund. Talks between Manara and Pakistani authorities occurred last year, converging on stakes within the expansive Barrick Gold-led copper-gold project.

(With inputs from agencies.)