Saudi Arabia to Begin Lithium Mining by 2027 in Economic Diversification Drive

Saudi Arabia has announced plans to commence lithium mining by 2027, a move aimed at supporting its Vision 2030 initiative for economic diversification. The shift comes amid growing global demand for lithium, driven by the rise of electric vehicles (EVs) and the transition to clean energy. With the support of Aramco and Ma’aden, the kingdom aims to position itself as a significant player in the clean energy transition and reduce its reliance on oil revenues.

Lithium, often referred to as the “new oil,” is essential for EV batteries. Saudi Arabia’s strategy includes ramping up lithium production to meet rising domestic and global demand. Demand for lithium is projected to increase twentyfold by 2030, and the kingdom’s efforts are aligned with this trend. The plan also includes boosting revenues from mining activities to $64 billion by 2030, up from the current $17 billion.

Saudi Arabia’s Vision 2030, introduced in 2016, outlines a roadmap for economic, social, and cultural diversification. As part of this initiative, the kingdom is not only focusing on lithium but also on other mineral resources. It is estimated that Saudi Arabia holds $2.5 trillion in unexploited mineral wealth, including reserves of bauxite, cobalt, nickel, and gold. The country is also actively pursuing interests in overseas mining projects, such as a gold mine in Pakistan, and aims to source copper from Pakistani mines to meet local demand, which currently stands at 365,000 tons annually.

In December, Aramco and the Saudi startup LihaTech announced advancements in extracting lithium from oil fields. These efforts complement plans to build an electric vehicle manufacturing facility along the Red Sea, further solidifying the kingdom’s commitment to clean energy and industrial innovation.

The kingdom’s focus on mining and mineral production underscores its broader objective of economic resilience and alignment with global priorities. By diversifying its resource base and investing in critical industries, Saudi Arabia aims to secure its place in the evolving global economy.