Saudi Arabia is making significant strides in the electric vehicle (EV) sector by focusing on securing a vital mineral – lithium. The country, known for its oil-dependent economy, is now looking to diversify and become a hub for EV manufacturing.
In an interview, Minister of Industry and Mineral Resources Bandar Alkhorayef emphasized the importance of lithium in the production of batteries for electric vehicles. He highlighted the necessity of sourcing lithium from overseas, as domestic supplies are still in the early stages of development.
Saudi Arabia has initiated projects to extract lithium from seawater and salinated discharges from oil fields in collaboration with Aramco. However, the success of these initiatives remains uncertain. Alkhorayef acknowledged the need for further exploration to determine the economic feasibility of these projects based on deposit size and concentration.
To support its EV ambitions, Saudi Arabia’s sovereign wealth fund and mining company have formed a joint venture to invest in mining assets abroad. Alkhorayef expressed confidence in meeting the country’s natural resource needs through partnerships and investments, either domestically or internationally.
The country has also shown interest in potential investments in Chile’s mining sector, particularly in lithium. While discussions are ongoing, Saudi Arabia is actively exploring opportunities to secure a stable supply of lithium for its growing EV industry.
As Saudi Arabia continues to make strides in the EV sector, the world watches closely as the country transitions from oil dependency to sustainable energy solutions.