Lithium… The future of white gold

By Mohammed Hassan Mohammed Al-Naimi

The kingdom of Saudi Arabia seeks to become a major Center for the manufacture of electric car batteries, as part of its plan to search for new ways to diversify its economy and develop the local automotive industry, and launched the mining exploration empowerment program to enhance exploration work, and maximize the value achieved from the mining sector, within the framework of efforts aimed at promoting and developing the mining sector and turning it into the third pillar of national industries; in line with the objectives of Saudi Vision 2030.

Lithium enters into many industrial and medical fields, and its salts and oxides are also used in many things that we deal with daily.

Lithium is an essential component in the manufacture of ceramics and glass, in the field of electricity and electronics, and ridding oil stains on clothes, and lithium enters mining as an essential element in the manufacture of many metals used in industries, lithium compounds are used in the manufacture of fireworks, lithium plays a major role in protecting nature from pollution, and lithium has uses in the field of

Some countries are leading in the world’s white gold reserves, such as Chile, Argentina and Bolivia, as global reports have suggested that South America may witness a geopolitical struggle over lithium, in light of the green transition and increased production of electric cars.

The total lithium reserves in the world reached about 28 million metric tons in 2023, according to US Geological Survey data, Chile is in the lead by about 9.3 million metric tons, Statista’s analysis estimated that the global lithium market will reach 19 billion dollars by 2030, and McKinsey & Company predicted that the demand for lithium will rise to about four million metric tons in the same year, enough for the need of a booming industry, as well as supporting global plans to protect the environment, and reduce the carbon footprint.

The demand for lithium has risen in recent years in parallel with the trend of car factories to manufacture electric vehicles, after several countries, such as the UK, Sweden, the Netherlands, France, Norway and Canada, announced their intention to ban the sale of cars with internal combustion engines. According to a World Bank report, lithium production should be increased by about five times to meet global emission reduction targets by 2050.

Saudi Arabia has made efforts in the field of electric vehicles, from the creation of its brand “sir” and the establishment of a metal factory for electric vehicles, targeting the investment fund to produce 500 thousand electric cars annually, Aramco’s quest to extract lithium from salt water in its oil fields, as well as Ma’aden’s efforts to extract lithium from salt water.

Lithium will turn Saudi Arabia into a competitor in the electric car market, and the kingdom, through its mining wealth estimated at about 4.9 trillion riyals, has begun to enter as a major competitor in the manufacture of electric car batteries by attracting lithium miners and battery manufacturers to be able to take a share of the electric car supply chain.

In October last year, the Saudi mining company “Ma’aden” announced a pilot project to extract lithium from seawater, in cooperation with the innovation projects fund at King Abdullah University of Science and technology.

Seawater contains low concentrations of the mineral and requires large amounts of energy for maximum extraction.

This may not be a problem in energy-rich Saudi Arabia, but the most profitable source of lithium could be the salt water used to remove crude oil from old oil wells.