Work

Saudi Arabia’s Lithium Ambitions: Trade, Policy, and Economic Implications

Year: 2025

Type: article

Abstract: This study evaluates the economic, trade, and environmental implications of Saudi lithium production using quantitative models, including Partial Equilibrium Modeling, Trade Network Analysis, Price Elasticity Modeling, and ARIMA/VAR forecasting. Findings indicate that Saudi lithium production could contribute to the stabilization of global prices, potentially reducing them by 1.4% to 2.9%, but it will not significantly disrupt major suppliers unless production exceeds projected capacities. Foreign direct investment barriers, the absence of domestic refining infrastructure, and water-intensive extraction methods are particularly challenging in Saudi Arabia’s arid climate and pose critical risks to industry growth and sustainability. Policy recommendations include establishing a structured lithium governance framework, incentivizing battery-grade refining investments, forging strategic trade agreements with EV manufacturers, and prioritizing sustainability-driven extraction strategies like Direct Lithium Extraction. Addressing there industrial, regulatory, and environmental constraints can position Saudi Arabia as a key lithium supplier, bolstering its energy security under Vision 2030 and enhancing global market stability.

Source: The Journal of Environment & Development

DOI: 10.1177/10704965251393424

Authors: Haitham Khoj, Hisham Bardesi, Nadia Yusuf

Institution: King Abdulaziz University

Language: English

Topic: Extraction and Separation Processes

Subfield: Mechanical Engineering

Field: Engineering

Domain: Physical Sciences

SDGs: Industry, innovation and infrastructure, Affordable and clean energy, Climate action, Responsible consumption and production, Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $3,650