Saudi Arabia Discovers Lithium Reserves: A Game-Changer for its Economy

White Gold (Lithium Reserves) discover by the Saudi's oli refinerie

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12/21/20242 min read

a flag flying in the wind with a blue sky in the background
a flag flying in the wind with a blue sky in the background

### Saudi Arabia Discovers Lithium Reserves: A Game-Changer for its Economy

Saudi Arabia, globally renowned for its vast reserves of oil and natural gas, has unearthed a new treasure—lithium reserves, often called "white gold" due to its critical role in the energy transition. This groundbreaking discovery could significantly diversify the Kingdom’s economy and cement its position as a global leader in sustainable energy.

#### Lithium Found in Saudi Oil Fields

Saudi Aramco, the state-owned petroleum and natural gas giant, recently revealed the extraction of lithium from brine in one of its oil fields near the sea. Under a pilot program, this extraction process is being spearheaded by **Lithium Infinity (Lihytech)**, a startup born at King Abdullah University of Science and Technology. The project is being developed in collaboration with Saudi mining company Ma’aden and Aramco itself.

Khalid bin Saleh Al-Mudaifer, Saudi Arabia's Deputy Minister of Mining Affairs, confirmed that the Kingdom will soon launch a commercial pilot to refine this extraction technology and scale operations.

> "They’re building a commercial pilot at the oil fields. The brines that come out of the field will feed into this commercial pilot on a continuous basis," Al-Mudaifer stated.

#### The Commercial Viability of Lithium Extraction

Currently, extracting lithium from brine runoff is more expensive than conventional methods like mining from salt flats. However, experts believe that rising global lithium prices will make this innovative process commercially feasible. The Kingdom is positioning itself as a key player in the global lithium market, joining other energy giants like Exxon Mobil and Occidental Petroleum, who are also exploring lithium extraction technologies.

#### Why Lithium Matters for the Future

As the world transitions away from fossil fuels, lithium is emerging as a critical resource for the global energy sector. Lithium-ion (Li-ion) batteries, the backbone of electric vehicles (EVs), smartphones, laptops, and countless other devices, are lightweight, rechargeable, and have a high energy density.

Saudi Arabia has already invested heavily in the EV market, aligning with Crown Prince Mohammed bin Salman’s ambitious **Vision 2030** to diversify revenue streams and reduce dependency on oil. With this lithium discovery, the Kingdom is set to strengthen its foothold in the EV supply chain and the renewable energy sector.

#### What Does This Mean for Saudi Arabia's Economy?

This discovery represents a strategic pivot for Saudi Arabia’s economy, providing an opportunity to transition from an oil-dependent revenue model to a diversified, sustainable future. Lithium, dubbed the "future of energy," will not only bolster the Kingdom’s economy but also align it with global energy goals focused on sustainability and carbon neutrality.

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This lithium breakthrough reinforces Saudi Arabia’s vision of becoming a global hub for advanced technology, mining, and energy transformation. As fossil fuel reserves dwindle worldwide, Saudi Arabia's move toward lithium extraction ensures its economic relevance in the rapidly evolving energy landscape.

Stay tuned for more updates on how Saudi Arabia's lithium revolution shapes its economy and the global energy market.

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**Tags:** Lithium Discovery, Saudi Arabia Economy, Energy Transition, Vision 2030, Renewable Energy, EV Market