Saudi Aramco, the world's largest oil producer, is planning a major investment in lithium production to secure a stake in the EV battery supply chain and diversify its revenue sources.
Saudi Aramco , the world's leading crude oil exporter, is poised to announce on Wednesday a significant investment push into lithium production. This strategic move, according to sources close to the global energy giant, aims to secure a foothold in the supply chain and diversify away from its traditional dependence on oil.
The expansion into lithium aligns with Aramco's broader ambition to establish itself as a prominent mining hub and capitalize on the material crucial for the global energy transition. This initiative builds upon Saudi Arabia's ongoing efforts to diversify its revenue streams and explore profitable ventures beyond oil. Last year, the Kingdom's inaugural electric vehicle (EV) brand, Ceer, a joint venture between the Public Investment Fund (PIF) and Foxconn, secured a $1.3 billion contract for the construction of its EV manufacturing complex in King Abdullah Economic City. Ceer is dedicated to designing, manufacturing, and supplying technologically advanced electric sedans and SUVs, leveraging cutting-edge systems from Foxconn and BMW. The kingdom's vision extends to becoming a leader in the EV sector, exemplified by projects like the Ceer plant and the pursuit of lithium resources. In September, Aramco and Saudi start-up Lithium Infinity Lihytech announced a strategic partnership to extract lithium from oilfield brine at Aramco's vast oilfields. Saudi Arabia's Vice Minister of Mining Affairs, Khalid al-Mudaifer, confirmed in late 2022 that the venture had successfully extracted lithium from brine samples collected from Aramco's oilfields. Al-Mudaifer indicated that a commercial pilot project was underway at the oil fields, with continuous brine feed into the pilot facility
Saudi Aramco Lithium Oil Production Diversification Energy Transition Electric Vehicles Mining
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