Saudi Arabia is committed to importing lithium from abroad in order to support its ambitions in producing electric car batteries and investing in the sector, according to Minister of Industry and Mineral Resources Bandar Al-Khorayef. Despite attempts to source lithium locally, these efforts are still in the early stages, emphasized Al-Khorayef during a special meeting of the World Economic Forum in Riyadh.
Lithium is considered essential for the future, particularly for batteries, and Al-Khorayef highlighted its importance in the supply chain. He stated that it is unimaginable to live without it. Saudi Arabia is exploring the possibility of extracting lithium from seawater and salty discharges in collaboration with Aramco, although the success of these initiatives remains uncertain. While there are promising signs, more research and development are required to make these initiatives economically viable.
The Public Investment Fund and Ma’aden, its affiliate mining company, have established a joint project called Manarat Al-Ma’adin to invest in mining assets abroad. Al-Khorayef expressed confidence that Saudi Arabia’s natural resource needs will be met through domestic products or imports. Additionally, the Saudi embassy in Santiago has reached out to Chile about potential investments in the mining sector.
Chilean officials acknowledged discussions with Saudi Arabia regarding potential investments in the mining sector but did not provide specific details. Al-Khorayef stated that he was not aware of any discussions with Chile regarding lithium licenses. The efforts to secure a stable supply of lithium are crucial for Saudi Arabia’s investments in electric vehicle production and battery technology.
