Saudi Arabia Discovers Lithium Reserves in Oil Fields: What it Means For Kingdom’s Oil-Rich Economy

Riyadh: Saudi Arabia has discovered significant lithium reserves within its oil fields near its sea, as Saudi Aramco, the Kingdom's state-owned petroleum and natural gas giant, has successfully extracted lithium under a pilot project.

Khalid bin Saleh Al-Mudaifer, Saudi Arabia’s Deputy Minister of Mining Affairs, revealed plans for a commercial pilot program to directly mine lithium, signaling a shift toward embracing the global energy transition.

The extraction project will be spearheaded by Lithium Infinity, also known as Lihytech, a start-up from King Abdullah University of Science and Technology. In collaboration with Saudi mining company Ma’aden and Aramco, the venture aims to harness innovative technology to mine lithium from brine runoff in oil fields. “They are extracting lithium through new technology developed at King Abdullah University, and the project is advancing rapidly,” Al-Mudaifer stated.

The Deputy Minister also noted that a commercial pilot plant would soon be operational at these oil fields. The brines produced as a byproduct of oil extraction will feed this plant continuously, laying the groundwork for large-scale lithium production.

Lithium: The Kingdom’s Next Economic Powerhouse

While extracting lithium from oil field brine is currently costlier than traditional methods like mining salt flats, Al-Mudaifer expressed optimism about its commercial viability if global lithium prices rise. Saudi Arabia joins other oil majors like Exxon Mobil and Occidental Petroleum in exploring cutting-edge technologies to filter lithium from brine as the world shifts away from fossil fuels.

Aramco has confirmed its interest in lithium extraction, stating it is actively assessing the presence of the metal in its fields. This aligns with Saudi Crown Prince Mohammed bin Salman’s broader vision to transform the kingdom into a hub for electric vehicles (EVs) and reduce dependence on oil revenues.

Lithium: The White Gold of the Energy Transition

Often referred to as "white gold" for its critical role in the global energy future, lithium is poised to replace traditional fossil fuels as a key energy source. Lithium-ion (Li-ion) batteries are the backbone of modern technology, powering everything from electric vehicles and smartphones to laptops and toys.

Renowned for their lightweight design, high energy density, and rechargeability, Li-ion batteries are an efficient and cost-effective solution for a wide range of applications. As fossil fuel reserves deplete, lithium’s importance is expected to soar, making it a vital resource for the energy transition.

(With inputs from Reuters)