Investor Flock to UAE to Set Up Lithium Production Facilities

With Lithium emerging as a core component in achieving clean energy targets for countries across the world, the UAE is leaving no stone unturned to position itself as a regional hub by developing Lithium production facilities in the country.

Both – local and international companies – have announced plans to establish Lithium extracting and manufacturing battery production projects in the UAE, which has witnessed a large influx of investments by these companies.

The UAE, which has set a target of 2050 to achieve net-zero emissions, aims to have 50% of all vehicles on the road as electric and hybrid by that year.

Prominent among the local firms are the state-owned Abu Dhabi National Oil Company (ADNOC), which has been making huge investments, as it intends to extract lithium from brine using Direct Lithium Extraction (DLE) technology.

DLE is a new-age innovative solution to produce high-grade commercial lithium at a low cost for the clean energy manufacturing industry. This technique employs a selective absorbent to extract lithium from brine (salt) water. The resultant solution is further purified to produce high-grade lithium carbonate and lithium hydroxide.

While ADNOC has not completely disclosed its extraction plan, it is certainly exploring the latest and advanced technologies to make a smooth transition.

Titan Lithium- another UAE-based company, has announced its plans to establish a state-of-the-art lithium processing plant in three phases with investments of $1.36 billion to manufacture electric vehicle batteries in Khalifa Industrial Zone (KIZAD) in Abu Dhabi.

According to the KEZAD group, on completion, the plant will import more than 150,000 tonnes of lithium annually from their mines located in Zimbabwe. It will undergo processing in Abu Dhabi.

Australian company Lepideco also intends to build a facility to produce lithium hydroxide and sustainable chemicals in KIZAD, with an investment of $94.75 million to strengthen the UAE’s position in the lithium battery supply chain.

With regard to investments abroad, Dubai-based UMPC Mining Projects is investing around $150 million in a lithium extraction project in the Argentine province of Catamarca.

All these Lithium producing projects indicate the UAE’s ambitions to develop the clean energy sector and transition to a sustainable economy. The UAE also seeks to build an integrated supply chain for lithium, from raw material extraction to the manufacturing of final batteries.

Heart of Future Industries

Lithium is witnessing increasing global demand due to its importance in many industries, most notably the manufacture of lithium-ion batteries used in electric cars and electronic devices. Lithium is also used in the renewable energy storage industry, making it a vital element for achieving sustainability goals.

Lithium alloys are used in the manufacture of aircraft and spacecraft and in the manufacture of high-performance industrial lubricants. It is worth noting that the UAE aims to benefit from lithium in other industries such as pharmaceuticals, glass and ceramics.

On their part, the Middle Eastern countries have embraced the electric vehicle revolution with robust investment. The EV market was valued at $2.7 billion in 2023 and is predicted to hit $7.65 billion by 2028.