A Saudi project worth up to $200 million aims to extract lithium from brine associated with oil operations, targeting annual production of 2,000 metric tons in a move that connects the Kingdom’s oil expertise with battery manufacturing and emerging energy technologies.

Riyadh | BETH – October 16, 2026

Saudi Arabia is moving to develop a new strategic minerals industry through a project undertaken by Saudi Aramco in cooperation with National Energy Services Reunited (NESR) to extract lithium from brine associated with petroleum operations and process it into materials used in battery manufacturing.

The project targets annual production of 2,000 metric tons of battery-grade lithium carbonate, with operations and production scheduled to begin in late 2027.

The contract is valued at approximately $200 million over a period of up to five years, under an agreement announced on October 8.

From Oilfields to Batteries

The project relies on Direct Lithium Extraction (DLE) technology, which enables lithium to be extracted from brine solutions and subsequently processed into lithium carbonate used in electric vehicle batteries and energy storage systems.

The partnership combines Aramco’s expertise in subsurface operations with NESR’s technologies in water treatment and mineral extraction.

NESR CEO Sherif Foda emphasized that Saudi Arabia’s existing resources and expertise offer an opportunity to establish a domestic lithium industry. He highlighted the importance of technology transfer and localizing manufacturing to strengthen supply chain resilience and reduce dependence on imports.

An Industry Beyond Extraction

The initiative is significant because lithium has become an essential material in electric vehicles, electronics, and electricity storage technologies—industries that require reliable supply chains and specialized industrial and technological capabilities.

The project does not represent the launch of large-scale commercial production. Rather, it is a development and technology validation phase that will help assess opportunities for future expansion.

BETH Analysis | New Value from Oil

The project's strategic significance lies in leveraging the infrastructure and accumulated expertise of the oil and gas sector to establish a new industrial activity, rather than treating traditional and emerging energy industries as separate paths.

This provides Saudi Arabia with an opportunity to expand the economic value of its resources and gradually move from producing raw materials toward manufacturing inputs for advanced industries.

However, the project's success will not be measured by its targeted production capacity alone, but also by extraction efficiency, production costs, the quality of the final product, and the ability of domestic industries to utilize it.

The greater value lies not simply in extracting lithium from water, but in transforming it into a Saudi industry extending from technology development to finished products.