Saudi Arabia has hit a significant milestone in diversifying its economy by discovering lithium reserves, often referred to as “white gold,” in its oil fields near the sea. This discovery marks a major step in the kingdom’s efforts to transition from its reliance on oil and natural gas.
Lithium Extraction in Saudi Arabia: A Game-Changer
Saudi Aramco, the state-owned petroleum and natural gas company, has successfully extracted lithium through a pilot project conducted in one of its oil fields. This initiative paves the way for Saudi Arabia to enter the global lithium market, which is crucial for the growing electric vehicle (EV) and renewable energy sectors.
Khalid bin Saleh Al-Mudaifer, Saudi Arabia’s Deputy Minister of Mining Affairs, announced plans to launch a commercial pilot program for the direct mining of lithium. This project is set to accelerate under the leadership of Lihytech, a start-up from the King Abdullah University of Science and Technology, with support from Saudi mining giant Ma’aden and Aramco.
“They are developing advanced technology for lithium extraction and are building a commercial pilot at the oil fields. Brines from the fields will feed into this program continuously,” Al-Mudaifer stated.
High Costs vs. High Demand
Although the cost of extracting lithium from brine runoffs is currently higher than traditional methods, the global surge in lithium demand may soon make the process economically viable. Leading energy companies like Exxon Mobil and Occidental Petroleum are also exploring similar technologies to extract lithium from brine, underscoring the rising importance of this metal.
Aramco confirmed that lithium is an “area of interest” and that it is evaluating extraction possibilities to capitalize on this growing market.
Saudi Arabia’s Vision for a Lithium-Powered Future
Saudi Arabia has invested billions to position itself as a hub for electric vehicles and renewable energy technologies. This aligns with Crown Prince Mohammed bin Salman’s vision to reduce the kingdom’s reliance on fossil fuels and diversify its revenue streams.
Lithium: The Key to Global Energy Transformation
Lithium, known as “white gold,” is fast becoming the cornerstone of global energy. As fossil fuel reserves dwindle, lithium-ion (Li-ion) batteries are taking center stage. These batteries power everything from electric cars to smartphones, offering a lightweight, rechargeable, and cost-effective energy solution.
The discovery of lithium in Saudi Arabia marks a transformative moment for the kingdom, enabling it to leverage this rare metal as part of its broader economic and environmental goals.