Aramco Awards $200 Million Contract to NESR for Saudi Arabia's First Lithium Project

Saudi Aramco has awarded US oilfield services firm National Energy Services Reunited (NESR) a five-year contract valued at nearly $200 million to establish the Kingdom's first lithium extraction project.

The project is expected to produce 2,000 tons annually of high-purity battery-grade lithium carbonate, with production set to begin by late 2027, according to reports.

The project relies on brine conditioning technology coupled with an integrated extraction unit, a method that extracts lithium from brine rather than traditional mines, reducing development costs and time-to-production.

This project represents a step toward transforming Saudi Arabia into a producer of minerals associated with electric vehicle batteries and energy storage systems, as part of its efforts to diversify its economy away from oil. This development matters to Gulf investors and industries, as localizing battery supply chains reduces import costs and opens up opportunities for new industries.

What Do These Terms Mean?

Lithium: A light metal used in manufacturing phone batteries, electric vehicles, and energy storage systems, and considered a key component in the transition to clean energy.

Lithium Carbonate: The processed form of lithium used in battery manufacturing. Its purity is measured in grades, with the highest purity suitable for EV batteries.

Brine Solutions: Saline water extracted from underground aquifers, containing dissolved minerals from which lithium is chemically separated.

Energy Transition: The gradual shift from fossil fuels to cleaner energy sources, which increases demand for battery minerals such as lithium.