Aramco's Commitment to Developing Lithium Supply Chain

Saudi Aramco, the national oil company of Saudi Arabia, produces almost 10% of the world’s oil – making it a key player in the petroleum sector.
But as the energy transition accelerates, even this oil giant is adapting. Aramco is moving beyond its traditional focus on fossil fuels, exploring renewable technologies and aligning with global sustainability goals.
Through investments in (R&D and partnerships with carbon capture firms, Aramco is working to reduce its environmental footprint. A significant step in this transition is its venture into lithium production, a critical element for electric vehicle (EV) batteries and renewable energy storage.
The evolution of Aramco
Founded in the 1930s, Aramco’s roots are firmly embedded in oil and gas, having began as a venture by explorers seeking petroleum reserves in the Saudi Arabian desert. Today, it is headquartered in Dhahran and led by CEO Amin H. Nasser.
Over the course of nearly a century, Aramco has grown t become the world’s largest integrated energy company.
While Aramco’s legacy is closely tied to hydrocarbons, the company is now playing a key role in Saudi Arabia’s broader goal of achieving net-zero emissions. This shift involves diversifying its energy portfolio, which includes exploring non-traditional resources like lithium.
Aramco’s focus on sustainability and innovation reflects its ambition to contribute to the global energy transition. By investing in energy technologies and renewable resources, it is working to secure its future while supporting Saudi Arabia’s Vision 2030—a strategy for economic diversification and environmental sustainability.
Why lithium is key to Aramco’s strategy
Aramco’s push into lithium production signals its commitment to developing a supply chain for this essential mineral.
Lithium is the backbone of EV batteries and renewable energy storage. Global demand is growing rapidly, tripling in the past five years, and is expected to increase twentyfold by 2030, largely driven by the adoption of EVs and the expansion of renewable energy infrastructure.
Currently, China controls about two-thirds of the global lithium processing market. However, other regions, including the Middle East, are working to reduce reliance on Chinese dominance. Aramco’s entry into lithium production positions it as a competitor in this space.
To strengthen its capabilities, Aramco is partnering with the Saudi Arabian Mining Company (Ma’aden), the largest mining firm in the Middle East and North Africa. Together, they plan to establish a joint venture to explore and mine lithium within Saudi Arabia. This collaboration will help secure a domestic supply chain for lithium and contribute to the Kingdom’s economic diversification efforts.
Nasir K. Al-Naimi, Upstream President at Aramco, highlights the significance of the initiative: “This announcement reflects Aramco’s focus on positively contributing to the global energy transition. The proposed joint venture will enable extraction of energy transition minerals, contributing meaningfully to the growth of more sustainable energy solutions while diversifying our portfolio for a lower-carbon future.”
Building a lithium supply chain
Aramco and Ma’aden's partnership leverages each company’s unique strengths. Aramco brings extensive geological expertise, technological innovation and an integrated supply chain, while Ma’aden offers decades of mining experience and a deep understanding of the region’s mineral resources.
The collaboration is expected to accelerate the exploration of Saudi Arabia’s mineral-rich Arabian Shield, an area estimated to contain US$2.5tn worth of untapped resources.
“Ma’aden has been undertaking one of the world’s largest single-jurisdiction exploration programmes across the Arabian Shield to unearth the estimated US$2.5tn mineral endowment," explains Dr Darryl Clark, Senior Vice President of Exploration at Ma’aden.
“This proposed joint venture would enable us to accelerate exploration of the Arabian Platform, combining Aramco’s vast knowledge of the area with Ma’aden’s extensive mining and exploration expertise.”
By integrating their capabilities, Aramco and Ma’aden aim to establish Saudi Arabia as a significant player in the global lithium market. This initiative not only supports the Kingdom’s sustainability goals but also aligns with broader efforts to meet global demand for critical minerals needed in the clean energy transition.
As Aramco expands its role in the lithium supply chain, it reinforces its commitment to a lower-carbon future and cements its place in the evolving energy landscape.
Nasir concludes: "We expect this partnership will leverage the world’s leading upstream enterprise to apply significant low-cost advantages, industry experience, technological innovation, accumulated subsurface knowledge and an integrated supply chain ecosystem, with a view to meeting the Kingdom and potentially the world’s projected lithium demand."
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