Saudi Arabia Aims to Produce Lithium for Electric Vehicle Batteries

Investing.com -- Saudi Arabia is exploring the potential for lithium production, a key component in electric vehicle batteries, as part of its broader economic transformation away from oil. According to Deputy Mining Minister Khalid Al-Mudaifer, the Middle Eastern country is conducting two projects to evaluate lithium production methods. He also indicated that the country plans further initiatives in this area.

In a separate development, state energy company Saudi Aramco (TADAWUL:2222) is running a collaborative project to extract lithium from saline water obtained from oil fields. The company is assessing the presence, concentration, and extraction possibilities of lithium in partnership with King Abdullah University of Science and Technology.

In an interview, Al-Mudaifer stated that the country aims to produce enough lithium to manufacture one million batteries annually. The produced lithium will cater to both domestic and export markets.

In addition to lithium projects, the state-owned mining investment company Manara Minerals Investment Co. plans to develop nickel processing facilities in Saudi Arabia. The country is also evaluating graphite production. Both nickel and graphite, which can be synthesized in the oil refining process, are utilized in battery technologies.