Saudi Arabia is very Known globally for its vast oil and natural gas reserves and it has made a groundbreaking discovery that could reshape its economic future. Lithium, often referred to as “white gold” for its critical role in powering modern technology, has been found in the kingdom’s oil fields near the sea. This discovery marks a major step in Saudi Arabia efforts to diversify its oil-dependent economy.
Saudi Aramco, the state-owned petroleum giant, has begun lithium extraction as part of a pilot project. Khalid bin Saleh Al-Mudaifer, the Deputy Minister of Mining Affairs, announced plans to expand the initiative into a commercial pilot program. The operation will focus on direct lithium mining from brine byproducts produced during oil extraction.
The extraction process is being spearheaded by Lithium Infinity (Lihytech), a start-up from King Abdullah University for Science and Technology (KAUST), in collaboration with Ma’aden, the Saudi mining company, and Aramco. “This new technology, developed at KAUST, is accelerating lithium extraction, and the commercial pilot will soon commence on a continuous basis,” Al-Mudaifer stated.
Despite the higher costs of extracting lithium from brine compared to traditional methods like salt flats, Al-Mudaifer expressed optimism about the project’s potential profitability as global lithium prices rise. Major players such as Exxon Mobil and Occidental Petroleum are also exploring brine-based lithium extraction, reflecting a global shift toward reducing reliance on fossil fuels.
The discovery positions Saudi Arabia as a potential leader in the lithium market, critical for manufacturing rechargeable lithium-ion batteries used in electric vehicles (EVs), smartphones, laptops, and other electronic devices.
Saudi Crown Prince Mohammed bin Salman has invested heavily in transforming the kingdom into a hub for EV production, aiming to diversify revenue sources beyond oil. Lithium is poised to play a central role in this vision, enabling the transition to sustainable energy solutions.
Aramco confirmed its interest in lithium, with plans to evaluate and scale extraction operations. This aligns with the kingdom’s strategy to integrate renewable energy technologies into its economic framework.
Lithium, often dubbed the “new oil,” is indispensable for the global energy transition. Its lightweight, high energy density, and rechargeability make lithium-ion batteries the preferred choice for EVs and countless electronic devices.
As the world seeks alternatives to dwindling fossil fuel reserves, lithium’s importance is growing exponentially. Saudi Arabia’s entry into the lithium market underscores its commitment to adapting to the demands of a sustainable energy future.
This lithium discovery represents more than an economic opportunity; it signals Saudi Arabia’s readiness to lead in the global energy transition. By investing in advanced technologies and renewable resources, the kingdom is positioning itself as a key player in the shift from fossil fuels to sustainable energy solutions.
With the pilot program gaining momentum and international interest growing, Saudi Arabia’s journey into the “white gold” industry could redefine its role in the global economy.
