Aramco and Ma’aden Explore Joint Venture for Lithium and Minerals Extraction
Saudi Arabia’s state oil giant Aramco and the country’s mining company Ma’aden have signed a non-binding term sheet to explore a joint venture focused on minerals exploration and mining. Announced during the Future Minerals Forum in Riyadh, the venture would prioritize energy transition minerals, particularly lithium, and advance cost-effective direct lithium extraction (DLE) technologies. Commercial production could begin as early as 2027.
This initiative is part of Aramco’s broader lithium extraction project in partnership with the King Abdullah University for Science and Technology (KAUST). The pilot project, led by KAUST’s startup Lithium Infinity (Lihytech) with support from Ma’aden and Aramco, aims to develop commercially viable methods for extracting lithium, a critical component in electric vehicle batteries, laptops, and smartphones. However, Saudi Mining Minister Bandar Alkhorayef noted that the project, while promising, is not yet commercially feasible.
Manara Minerals Eyes Investment in Pakistan’s Reko Diq Mine. Saudi Arabia’s Manara Minerals, a joint venture between Ma’aden and the Public Investment Fund (PIF), is considering an investment in Pakistan’s Reko Diq mine. This copper-gold project is one of the world’s largest undeveloped mining assets, owned jointly by global mining company Barrick Gold and Pakistan.
According to Alkhorayef, the Saudi Development Fund may contribute over $100 million to enhance Pakistan’s mining infrastructure, a critical step in ensuring the project’s economic viability. “Without that infrastructure, the economics of the deal are not attractive,” Alkhorayef said, adding that Manara is also exploring other ways to support Pakistan’s mining sector.
Manara Minerals, created to diversify Saudi Arabia’s economy away from oil, has been actively acquiring stakes in overseas mining assets. Executives from the company visited Pakistan in May 2024 to discuss potential investments in Reko Diq, reflecting Saudi Arabia’s growing focus on securing resources essential for the global energy transition.
