KEY POINTS
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NESR and Aramco have agreed to develop Saudi Arabia’s first direct lithium extraction project.
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The project targets annual production of 2,000 tonnes of battery-grade lithium carbonate from late 2027.
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The agreement has a potential value of $200 million over up to five years.
National Energy Services Reunited, NESR, has signed an agreement with Saudi Arabia’s state-owned oil company, Aramco, to develop the country’s first direct lithium extraction project, marking a new step in Saudi Arabia’s efforts to expand its role in the global battery materials market.
The project is designed to produce 2,000 tonnes of battery-grade lithium carbonate annually, with commissioning and the start of production planned for late 2027.
The agreement was announced on October 8, 2026, and will be implemented through NESR’s Environmental and Decarbonisation Applications (NEDA) business segment.
Project targets 2,000 tonnes of lithium annually
The demonstration project will focus on extracting lithium from brine, a salt-rich liquid that can contain dissolved lithium. The planned output of 2,000 tonnes a year will be processed into battery-grade lithium carbonate, a key material used in rechargeable batteries.
Lithium carbonate is an important input for batteries used in electric vehicles and energy storage systems. Demand for the material has grown alongside the expansion of electric mobility and renewable energy, although market conditions and prices can fluctuate.
The project represents Saudi Arabia’s first initiative of its kind, according to the announcement. If successfully delivered, it could help the Kingdom develop domestic lithium production capabilities and explore opportunities in the wider battery supply chain.
Production is expected to begin in late 2027, subject to the project’s implementation and commissioning schedule.
Agreement could be worth $200 million
The agreement has a potential contract value of about $200 million over a period of up to five years.
The partnership combines Aramco’s experience in subsurface operations with NESR’s lithium extraction technologies. Aramco’s knowledge of underground formations and field operations is expected to support the project, while NESR will contribute technologies for treating brine and recovering lithium.
The contract’s potential value reflects the scale of the proposed work over the agreement period. However, the announcement does not establish that the full $200 million will necessarily be realised, as the value is tied to the contract’s potential scope.
The collaboration also builds on NESR’s existing experience in Saudi Arabia, where the company has established regional subsurface and field operations capabilities.
Direct extraction technology at the centre of the project
The project will use NESR’s LiThara platform, which brings together brine pre-treatment, direct lithium extraction and carbonation technologies.
The process is designed to prepare the brine, separate lithium from the treated liquid and convert the recovered material into lithium carbonate.
Direct lithium extraction, commonly known as DLE, aims to recover lithium from lithium-bearing liquids without relying solely on conventional evaporation-based methods. Depending on the brine composition and technology used, it may offer opportunities to improve processing efficiency and shorten production cycles.
NESR says its modular LiThara solutions are designed to integrate these stages into a single system. The modular approach is intended to support faster deployment and allow production capacity to be scaled as required.
The project’s performance will depend on factors including the characteristics of the available brine, the efficiency of the extraction process and the economics of operating the facility.
Saudi Arabia seeks a role in the battery supply chain
The initiative could support Saudi Arabia’s broader ambitions to diversify its economy and develop industries linked to the energy transition.
Lithium is an important component of many rechargeable battery technologies, making reliable supplies increasingly relevant to electric vehicle manufacturers and energy storage developers.
Developing domestic extraction capabilities could give Saudi Arabia an opportunity to participate in a market traditionally associated with major producers such as Australia and countries in South America. However, the success of the demonstration project will be important in determining whether the technology can be deployed at a larger commercial scale.
For NESR, the agreement also creates an opportunity to apply its oilfield and environmental technology capabilities to lithium production, expanding its activities beyond conventional oilfield services.
The planned start of production in late 2027 will be a key milestone as both companies work towards establishing the project.
