Behind Saudi Aramco's Pivot Toward Sustainable Manufacturing

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Nasir K. Al-Naimi, Upstream President at Aramco
Saudi Aramco, producer of 10% of the world's oil supply, is set to branch out into the lithium market, supporting the production of climate technologies

It is simple. Saudi Aramco, the world's single largest oil company, has to move with the times. 

As producer of nearly 10% of global oil supplies, Aramco must take responsibility for decarbonising its operations. But how exactly will Aramco achieve this and where will it redirect its resources?

In short, the company is  investing heavily in research and development (R&D) and partnering with carbon capture initiatives to minimise its carbon footprint.

By diversifying its energy portfolio, Aramco is aiming to reduce its reliance on fossil fuels and contribute to a greener planet.​​​​​​​

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Life after oil

Aramco, a state-owned enterprise and the national oil company of Saudi Arabia, has roots dating back to the 1930s. Despite its historical focus on oil and gas, under the guidance of CEO Amin H. Nasser, the company is progressively aligning its operations with the global energy transition.

This strategy not only supports Aramco's future but also Saudi Arabia's ambition to achieve net zero emissions.

With an eye on future energy solutions, Aramco is now venturing into the lithium market, crucial for electric vehicle (EV) batteries.

Amin H. Nasser, President and CEO of Saudi Aramco

This move is particularly significant as China currently controls about two-thirds of the lithium processing market

China's pre-eminence in the production of lithium - and in the design and manufacturing of battery technologies using critical metals - is further compounded by restrictions recently proposed by the Chinese government on the export of these technologies and materials.

However, with western and Middle Eastern companies like Aramco stepping up investments, this dominance is becoming increasingly contested.

The soaring demand for lithium, which has tripled over the past five years and is expected to surge exponentially with the rise in EV production and renewable energy deployments, Aramco positions at the forefront of the critical minerals market.

Through its partnership with Ma'aden, the largest mining company in the Middle East and North Africa, Aramco is not just participating but potentially leading the lithium supply chain development.​​​​​​​

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Aramco's venture into the lithium market

By joining forces with Ma'aden, Aramco is significantly enhancing its capabilities in the lithium sector. This partnership merges Aramco's technological prowess and geological knowledge with Ma'aden's mining expertise, setting the stage for a robust lithium production base in Saudi Arabia.

According to Nasir K. Al-Naimi, Aramco's Upstream President, this collaboration aims to "positively contribute to the global energy transition" by establishing a vital link in the energy transition minerals supply chain.

Nasir K. Al-Naimi, Aramco’s Upstream President

Dr Darryl Clark, Ma'aden's Senior Vice President of Exploration, also underscores the strategic nature of this joint venture.

“Ma'aden has undertaken one of the world's largest single-jurisdiction exploration programs across the Arabian Shield, to unearth the estimated US$2.5tn mineral endowment," he says.

Dr Darryl Clark, Ma’aden’s Senior Vice President of Exploration

“This proposed joint venture 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.” 

As Aramco diversifies and innovates within the sustainable energy sphere, it not only broadens its business horizons but also plays a crucial role in shaping a greener energy landscape.


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