Saudi Aramco’s Move into Lithium and Sustainable Procurement

Saudi Aramco, the world's largest oil company, is shifting gears. While oil remains its primary business, the global energy transition demands a more sustainable approach.

Procurement leaders and supply chain managers are watching closely as Aramco invests in new energy markets, particularly lithium—a critical mineral for electric vehicle (EV) batteries and renewable energy storage.

For a company that produces nearly 10% of the world’s oil, this diversification is significant. Aramco is not only aiming to lower its carbon footprint but also positioning itself as a key player in securing sustainable supply chains for the future.

Aramco’s investment in critical minerals

Aramco has been at the centre of Saudi Arabia’s oil and gas industry since the 1930s, but the energy landscape is changing. Under the leadership of CEO Amin H. Nasser, the company is aligning with Saudi Arabia’s net-zero ambitions while also securing its long-term relevance in a decarbonising world.

Lithium has emerged as a strategic focus. As a crucial component in EV batteries, lithium demand has tripled in the past five years and is expected to keep rising as governments and businesses accelerate the shift to cleaner energy.

Currently, China dominates global lithium processing, controlling around two-thirds of the market. Adding to this challenge, China has introduced restrictions on the export of advanced battery technologies and critical mineral processing, making supply chain security an urgent concern for businesses worldwide.

This is where Aramco sees an opportunity. By stepping into the lithium market, the company is diversifying its portfolio and ensuring access to a resource that will be central to future energy systems. This move also supports the global push for more regionalised and resilient supply chains, reducing dependence on a single dominant supplier.

Building a lithium supply chain with Ma’aden

Aramco’s entry into the lithium sector is being driven by its partnership with Ma’aden, the largest mining company in the Middle East and North Africa. Together, they aim to develop a robust lithium supply chain within Saudi Arabia, leveraging Aramco’s energy expertise and Ma’aden’s mining capabilities.

Nasir K. Al-Naimi, Aramco’s Upstream President, highlights the company’s commitment to the energy transition, stating: “This collaboration aims to positively contribute to the global energy transition” by securing critical minerals for clean technologies.

For procurement professionals, Aramco’s move into lithium represents a major shift in how global supply chains for critical minerals are evolving. By securing regional production, Aramco and Ma’aden could help stabilise lithium supplies, reducing reliance on China and enhancing energy security for EV manufacturers and renewable energy projects.

Dr Darryl Clark, Ma’aden’s Senior Vice President of Exploration, also emphasises the importance of this initiative: “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.

“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 embraces sustainable energy investments, it is not just adapting to change—it is actively shaping the future of procurement in the critical minerals market.

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