Aramco and Ma'aden Join Forces to Explore Energy Transition Minerals

Aramco and Ma'aden Collaboration on Transition Minerals

In a significant move to support the energy transition, Aramco has entered into a preliminary agreement with Ma'aden to launch a joint venture aimed at exploring and mining transition minerals in Saudi Arabia. This collaboration will leverage Aramco's extensive geoscientific data and digital capabilities alongside Ma'aden's decades of mining experience.

The primary focus of this joint venture will be the extraction of lithium, an essential component for energy storage and electric vehicles. Aramco has already identified promising lithium concentrations exceeding 400 parts per million in its operational areas, highlighting significant potential for future production. With commercial lithium production expected to commence by 2027, the partnership seeks to satisfy the soaring global demand for this critical mineral.

The joint venture aims to enhance Aramco's capabilities beyond traditional energy sectors, tapping into high-value mineral resources within the Kingdom. This strategic initiative aligns with the country's broader objectives for economic diversification and the development of sustainable energy solutions. As part of this endeavor, the joint venture will apply advanced technologies, including direct lithium extraction (DLE), which promises to be more cost-effective and environmentally friendly.

Nasir K. Al-Naimi, President of Aramco Upstream, emphasized the company’s commitment to contributing positively to the global energy transition. He noted that this collaboration represents a pivotal step in fulfilling the growing demand for sustainable energy solutions and diversifying Aramco's portfolio in a low-carbon future. Al-Naimi stated, “This announcement reflects our focus on the global energy transition. Our partnership will facilitate the extraction of energy transition minerals, significantly contributing to sustainable energy solutions and reducing carbon emissions.”

Ma'aden, the largest mining and metals company in the MENA region, is also keen on this partnership. Darryl Clark, Ma'aden's Senior Vice President for Exploration, pointed out that the joint venture could expedite the exploration efforts in the Arabian Shield, combining the extensive geological knowledge of Aramco with Ma'aden's mining expertise. With an estimated mineral endowment of $2.5 trillion in the Arabian Shield, there is substantial potential for discovering new resources that can support both local and global energy needs.

Lithium is increasingly vital in powering electric vehicles and renewable energy systems. Over the past five years, global demand for lithium has surged, with projections suggesting that demand will continue to expand at a compound annual growth rate of over 15% until 2035. The joint venture is well-positioned to not only meet the local demands but also support an anticipated increase in lithium requirements worldwide, which is expected to grow twenty-fold between 2024 and 2030.

This collaboration was announced during the Future Minerals Forum in Riyadh and is subject to customary closing conditions, including regulatory approvals. As Aramco and Ma'aden embark on this promising venture, they are not only contributing to the local economy but also playing a crucial role in the global transition to sustainable energy solutions. With the backdrop of a heavily fluctuating energy market and growing environmental concerns, this joint venture could be pivotal.

As the world increasingly shifts towards clean energy, the exploration and extraction of transition minerals like lithium are becoming essential. This partnership stands to enhance both companies' positions within the mining sector and contribute significantly to the energy landscape of the future in Saudi Arabia and beyond.