Saudi Arabia Aims to Diversify Economy with Lithium and Mineral Wealth

New Delhi: Saudi Arabia, known for its vast oil wealth, is now venturing into lithium mining as part of its ambitious Vision 2030 plan. A deal has been finalized between Aramco, the world’s largest oil company, and mining firm Ma’aden, marking the kingdom’s foray into the lucrative lithium market. Lithium, a key component in electric vehicle (EV) batteries, will start being extracted from Saudi mines in 2027. Officials expressed optimism about meeting the rising domestic and global demand for lithium.

Saudi Arabia’s Vision 2030 aims to reduce the country’s dependency on oil by boosting mineral production and diversifying its economy. The kingdom is reported to have untapped mineral resources worth USD 2.5 trillion. Under its strategic plans, the government seeks to elevate mining revenues from USD 17 billion to USD 64 billion by 2030.

Beyond lithium, Saudi Arabia holds reserves of other critical minerals like gold, bauxite, cobalt, and nickel, whose values are climbing in global markets. Domestic demand for lithium is anticipated to surge 20 times by 2030.

In December, a collaboration between Aramco and lithium startup LihaTech achieved successful lithium extraction from oil fields. Furthermore, Saudi Arabia is planning to acquire stakes in Pakistan’s gold and copper mines to fulfill its domestic copper requirements, which stand at 365,000 tons annually.