Riyadh Cement has signed a letter of intent with battery chemicals firm EV Metals Group (EVM) that could see the Saudi-listed cement producer take a strategic stake in a planned lithium chemicals plant in Saudi Arabia.
The agreement, signed at the Future Minerals Forum in Riyadh, sets out a framework for Riyadh Cement to invest in EV Metals Arabia, EVM’s wholly owned local subsidiary. The proposed investment would support development of a lithium chemicals plant at Yanbu, which is intended to become the Middle East’s first lithium refining hub.
For Riyadh Cement, the move reflects a broader interest in industrial diversification and participation in downstream materials linked to the energy transition. While primarily a cement producer, the company has recently been active in projects aimed at improving fuel efficiency and reducing its carbon footprint.
EVM said the Yanbu project is designed to produce battery-grade lithium hydroxide and lithium carbonate for electric vehicle and energy storage markets. The two companies will now proceed with due diligence and negotiations on final investment terms.
Riyadh Cement has not disclosed the potential size or timing of any investment.
