Aramco, NESR Sign $200 Million Lithium Extraction Deal in Saudi Arabia

Summary

• Aramco and NESR signed a lithium demonstration project contract valued at roughly $200 million.
• The project targets 2,000 tons per year of battery-grade lithium carbonate from oilfield brine.
• It is the region's first direct lithium extraction venture, tying Saudi output to global battery supply chains.

The latest

Battery-grade lithium will be extracted from Saudi oilfield brine under an agreement worth about $200 million, signed by Aramco and oilfield services firm National Energy Services Reunited (NESR). The companies said the demonstration project targets 2,000 tons annually of lithium carbonate, with commissioning and production starting in late 2027. NESR described it as the first project of its kind in the region.

Details

• The contract: NESR said its environmental and decarbonization unit, NEDA, entered the agreement with Aramco to execute what the companies call the Aramco 2027 Lithium Demonstration Project. The release put the value at approximately $200 million over a contract term running up to five years.
• The output target: The project aims to produce 2,000 tons per annum of battery-grade lithium carbonate, according to the NESR statement. Battery-grade refers to purity levels required for use in lithium-ion cells, a tighter specification than industrial-grade material.
• The timeline: Commissioning and the start of production are planned for late 2027, NESR said. The company did not disclose interim construction milestones, a site location beyond the Kingdom, or whether the demonstration phase would be followed by a commercial-scale expansion.
• The technology: The agreement pairs Aramco's subsurface expertise with NESR's LiThara platform, which the company said covers brine pre-treatment, direct lithium extraction and carbonation. NESR described LiThara as modular, conditioning brine feedstock and extracting lithium in a single integrated process.
• The cost claim: NESR said the approach enables rapid, scalable deployment and offers competitive operating costs. The statement provided no cost-per-ton figure, no comparison with conventional hard-rock or evaporation-pond lithium production, and no capital expenditure breakdown for the demonstration unit.
• The companies: NESR describes itself as a leading oilfield services provider across the Middle East and North Africa. The statement said the project builds on the company's existing subsurface and field operations experience inside Saudi Arabia. Aramco is the Kingdom's state energy producer.
• The announcement: The statement was issued from Dhahran on October 8, 2026, through PR Newswire. Reuters also reported the partnership on the same day. Neither company named additional partners, contractors or offtake buyers for the lithium carbonate the project is designed to produce.

Background

Direct lithium extraction pulls lithium from brine using chemical or filtration processes rather than solar evaporation ponds or hard-rock mining. The technique has drawn investment because oil and gas operators already produce large volumes of brine as a byproduct of field operations.

Between the lines

The 2,000-ton target is modest against global lithium demand, which signals a test of technical and commercial viability rather than a production play. The structure supports that reading: a demonstration project, a five-year ceiling on the contract, and a single integrated technology platform being proven at field scale. What the late-2027 start produces will determine whether Aramco's brine becomes a supply source or stays a pilot.

What's next

Watch for commissioning progress toward the late-2027 start date, any disclosure of the project site, and whether Aramco announces offtake arrangements or a commercial-scale follow-on to the 2,000-ton demonstration unit.

Source: NESR via PR Newswire, Argaam, Reuters