Lithium Value-Chain Analysis and Opportunities Tender, Saudi Arabia - 105308401

Procurement Summary

Country : Saudi Arabia

Summary : Lithium Value-Chain Analysis and Opportunities

Deadline : 22 Aug 2024

Other Information

Notice Type : Tender

TOT Ref.No.: 105308401

Document Ref. No. : 0002010553

Competition : ICB

Financier : World Bank (WB)

Purchaser Ownership : Public

Tender Value : Refer Document

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Tender Details

Expression of Interest are invited for Lithium Value-Chain Analysis and Opportunities for Saudi Arabia

The Government of Saudi Arabia has adopted a “National Industrial Strategy” (NIS) which aims at developing a comprehensive roadmap to build an agile and competitive sustainable private-led industrial economy in line with Vision 2030. NIS has three strategic objectives: (a) build industrial national resilience, (b) become an integrated regional manufacturing hub, and (c) expand global leadership in selected segments. The NIS covers twelve priority sectors including automotive, renewables, machinery and equipment and metals (steel, aluminum, copper, and titanium).

By looking at global trends, the transition to low-carbon energy is transforming the landscape for countries to use their natural resources to contribute to economic development. Electrification of transport, decarbonization of industrial processes, and clean energy technologies for generation, transmission, and storage need more materials than fossil fuel-based energy technologies. As a result, the demand for minerals needed for the global energy transition—critical raw materials (CRMs)—is expected to grow exponentially and far exceeds current and projected production. Today, the mining and refining of CRMs and the manufacturing of products that use CRMs are concentrated in a few countries creating supply vulnerabilities along the value chain. There is room for mineral-rich developing countries to realize new business opportunities, and there is also room for other countries to position themselves in the midstream and downstream segments of these important CRM value chains.

The National Industrial Development Center (NIDC) is keen to attract industrial investment and establish new industries to diversify the economy and meet the aspirations of Vision 2030. In the context of the growing importance of ETMs, Saudi Arabia has begun to explore extracting lithium from sea water and from salinized discharges from the kingdom's oil fields in cooperation with Aramco. This is a long-term initiative and unclear on when it will materialize, so in the short-term the government is looking to source the lithium and explore opportunities in the midstream and downstream segments.

Lithium has many uses. Given the government-s focus on the electric vehicle industry, and in order to keep the project focused, this work will evaluate the competitiveness and potential of further developing the EV lithium battery value chain in Saudi Arabia. Other potentially high-value uses of lithium could be studied further in a separate exercise. . This could be justified since global uses of lithium have increasingly focused on the production of lithium batteries with consumption in batteries expected to account for almost 90 percent of uses by 2030 while other uses of lithium progressively lose market share. Moreover, according to market forecasts of end uses of lithium batteries to 2030, passenger electric vehicles occupy approximately 90% of the projected demand. Developing the EV lithium batteries value chain will require attracting significant public and private investments, both from domestic and international sources. This in turn relies upon adequate regulations and an enabling business climate, high performing, and capable institutions, strong ESG standards, a skilled workforce, and well-planned infrastructure.

Documents

 Tender Notice

105308401BID.zip