This study is probably the first of its kind to explore the potential and challenges of developing a clean energy transition through sustainable exploration and the use of lithium in Oman’s mining industry. This study explains how growing energy and environmental concerns significantly intensify interest in electric vehicles and hybrid electric vehicles, consequently increasing the demand for lithium exploration and production. Whereas Umm as Samim and Mahout are usually identified as major resources for a potential lithium commodity, this study uses statistical data from Oman’s National Center of Statistics and Information (NCSI) to determine the quantity and value of salt, lithium production, and sales to assess their commercial viability. The findings reveal that Oman has huge potential for lithium exploitation and production, considering the enormous quantities of spodumene and seawater salt with high-grade lithium available, developing efficient regulations and rules to protect investors’ rights, and reducing the environmental risks associated with the production and recycling of lithium-ion batteries. The realization of this potential cannot be attained until serious challenges in the country’s regulations, environmental hazards, and investment strategy are overcome. This study concludes by offering some practical and policy implications.