Discovery of lithium in Iran might be turning point

One of the subjects being covered in the international media right now is the discovery of a lithium mine in Iran and its possible effects on the manufacture of lithium-ion batteries and electric automobiles worldwide.

Iran (IMNA) - The deposit has 8.5 million tonnes of the rare metal, which is sometimes referred to as "white gold" for the fast-expanding electric car sector, according to Iran's Ministry of sector, Mining, and Trade (IMT). If the estimate is correct, the deposit would surpass Chile's 9.2 million tonnes of lithium reserves as the second-largest known lithium reserve in the world, according to the US Geological Survey.

The discovery of this lithium carbonate equivalent (LCE) deposit in Iran's hilly Hamadan province is encouraging news about the potential existence of more deposits there. With 89 million tons of lithium deposits estimated to exist worldwide, Iran may now hold close to ten percent of that supply.

In recent years, lithium prices have reached all-time highs due to rising demand for rechargeable batteries, such as those used in cellphones and electric cars. Due to the growing demand for the majority of low-carbon technologies that are pushing the limits of a low-carbon future within a global electric mobility ecosystem, lithium has acquired strategic relevance.

The unexpected finding is projected to draw further attention to Iran's still-developing extractives industry. Iran is home to 7% of the world's proven mineral deposits, although its GDP is just 0.66% made up of mineral goods.

Discovery of lithium in Iran might be turning point

According to Mehdi Karbasian, a former leader of the government-owned mines and metal holding firm IMIDRO, Iran's mineral reserves are currently worth $700 billion, with a value added that is believed to be $4 trillion.

Lithium extraction will be possible in the country over the next two years, according to IMT deputy minister Mohammad-Hadi Ahmadi. In an endeavor to launch the mine through cooperation with private investors, it is currently researching the technological capacities present in two industrialized countries.

Faced with pressure from sanctions, Iranian officials often use discretion when disclosing information on foreign participation in the country's development initiatives.

According to experts, such a boost to Iran's strategic energy reserves would provide it with a potentially powerful tool to counteract Western sanctions.

Iran has the greatest oil and gas reserves in the world combined, but owing to sanctions and the high number of producers, it is no longer able to make a substantial contribution to the global supply.

In terms of lithium, there are a finite number of commercially viable resources and a small number of suppliers. Iran's 8.5 million tonnes of lithium deposits make it hard to ignore Iran in terms of the market.

Iran will thus be able to utilize the possibility of luring foreign capital in its discussions with the West to lift sanctions on the Islamic Republic.

Discovery of lithium in Iran might be turning point

News ID 666764


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