Saudi Arabia, known for its massive oil revenues, is now preparing to mine lithium, often dubbed the “new oil.” A major deal has been signed between Aramco, the world’s largest oil company, and mining firm Ma’aden. Reports indicate that lithium extraction, crucial for EV batteries, will begin by 2027. Saudi companies are optimistic about ramping up lithium production to meet both domestic and global demand.
Vision 2030: A New Direction
Under its Vision 2030 initiative, Saudi Arabia aims to reduce its dependence on oil. The government plans to boost mineral production and diversify industries. The kingdom holds an estimated USD 2.5 trillion in untapped mineral resources and aims to increase mining revenues from USD 17 billion to USD 64 billion by 2030.
Beyond Lithium
In addition to oil and lithium, Saudi Arabia has significant reserves of gold, bauxite, cobalt, and nickel, all of which are rising in global value. The kingdom’s demand for lithium is expected to grow 20 times by 2030.
Lithium Extraction Milestone
In December, Aramco and LihaTech, a Saudi lithium startup, successfully extracted lithium from oil fields for the first time. Additionally, Saudi Arabia plans to acquire a stake in a gold mine in Pakistan and extract copper from Pakistani mines to address its annual demand of 365,000 tons of copper.
Shifting Away From Oil
As the world moves towards reducing oil dependency, Saudi Arabia is focused on increasing non-oil revenues. The kingdom is also establishing an electric vehicle factory along the Red Sea coast, signaling its commitment to a more diversified economy.
