Aramco and Ma’aden sign the non-binding Heads of Terms

Aramco, a global leader in energy and chemicals, has made a press release that it and Ma’aden, the Middle East’s largest mining and metals company, have signed a non-binding Heads of Terms agreement to establish a joint venture (JV) focused on minerals exploration and mining in Saudi Arabia.

The proposed JV will target energy transition minerals like lithium, crucial for electric vehicles, energy storage, and renewables. Leveraging Aramco’s resource management expertise and Ma’aden’s mining prowess, the JV aims to unlock Saudi Arabia’s high-value mineral reserves, drive innovation, and meet the growing global demand for lithium.

Energy diversification

The cooperation should result in exploration of high-concentration lithium deposits, with potential production starting by 2027. The utilization of Aramco’s 90+ years of subsurface data and advanced technologies should benefits the process. Moreover the cooperation supports for Saudi Arabia’s energy diversification and economic transformation goals.

Lithium demand has tripled in the past five years, with growth expected to exceed 15% annually through 2035. The JV could significantly boost the Kingdom’s capacity to produce 500,000 EV batteries and support 110 GW of renewables by 2030.

Sustainable energy

Aramco’s Upstream President Nasir K. Al-Naimi emphasized the JV’s role in advancing sustainable energy solutions stating: “This announcement reflects Aramco’s focus on positively contributing to the global energy transition. The proposed JV will enable extraction of energy transition minerals, contributing meaningfully to the growth of more sustainable energy solutions while diversifying our portfolio for a lower-carbon future. We expect that this partnership will leverage the world’s leading upstream enterprise to apply significant low-cost advantages, industry experience, technological innovation, accumulated subsurface knowledge and an integrated supply chain ecosystem, with a view to meeting the Kingdom and potentially the world’s projected lithium demand.”

The Ma’aden’s SVP of Exploration Darryl Clark highlighted its potential to accelerate exploration of the $2.5 trillion Arabian Shield mineral endowment. He has stated: “Ma’aden has been undertaking one of the world’s largest single-jurisdiction exploration programs across the Arabian Shield, to unearth the estimated $2.5 trillion mineral endowment. This proposed JV would enable us to accelerate exploration of the Arabian Platform, combining Aramco’s vast knowledge of the area with Ma’aden’s extensive mining and exploration expertise.”