• Saudi Arabia extracts lithium from oilfield runoff, a groundbreaking first for the region.
• Startup LiHyTech is set to spearhead commercial lithium production, aligning with Vision 2030.
• Lithium extraction positions the Kingdom as a key player in the global EV battery supply chain.

LiHyTech to Make Lithium Commercial

Saudi Arabia has achieved a historic milestone: extracting lithium from oilfield runoff. This achievement, announced by Deputy Minister of Industry and Mineral Resources Khalid Al-Mudaifer, marks a pivotal shift in the Kingdom’s resource strategy.

The state led project will see a handover to LiHyTech during the commercial phase. LiHyTech, a startup launched by King Abdullah University of Science and Technology, offers cutting-edge lithium extraction technology.

“They [LiHyTech] are preparing for a pilot commercial project in the oil fields so that the brine solutions coming out of the fields will continuously feed the pilot commercial project.”

Khalid Al-Mudaifer, Deputy Minister of Industry and Mineral Resources

LiHyTech, leveraging its proprietary green technologies, is carving a niche in a competitive market dominated by global players like Albemarle and Ganfeng Lithium. Unlike traditional methods, LiHyTech’s innovative approach ensures minimal environmental impact.

Why Lithium Matters More

Lithium—dubbed ‘white gold’—has become indispensable for electric vehicle (EV) batteries, with demand surging at 22% annually. Saudi Arabia’s move into this sector signals a shift away from oil dependency, directly supporting Vision 2030’s goals of economic diversification.

This strategic pivot adds a new competitor to the global lithium market, introducing a new supplier amid skyrocketing prices. Global lithium benchmarks highlight a 500% price increase over two years, amplifying the significance of this breakthrough.

Future-Proofing the Kingdom

The implications are profound. By positioning itself as a key player in the global EV battery supply chain, Saudi Arabia is not only addressing growing demand but also fostering job creation in high-tech sectors. EV production will require 2.5 million tons of lithium carbonate equivalent by 2030—a tenfold increase from today.

This venture reflects Saudi Arabia’s commitment to sustainable growth and technological leadership. With investor interest on the rise, LiHyTech’s success could catalyze broader innovation beyond the kingdom and across the region.