Iran claims to have discovered world’s second-largest lithium deposit
On Saturday, the Ministry of Industry, Mines, and Trade in Iran stated on Iranian state television that they have discovered a significant lithium deposit in Hamedan that ranks as the second-largest in the world.
According to the Ministry, this marks the first time that Iran has found a lithium reserve, with an estimated 8.5 million tons of lithium in the deposit.
As of 2022, Chile is the second-largest producer of lithium, with around 39,000 MT and the largest reserves globally, holding 9.3 million MT.
Australia was previously believed to have the second-largest reserves, with 3.8 MT.
‘More reserves could be discovered’
The exploration department head of MIMT, Ebrahim Ali Molabeigi, has expressed that there is a possibility of discovering additional lithium ore reserves in Hamedan, an area known for its significant clay deposits.
Furthermore, Molabeigi is optimistic that Iran will discover an economical method of extracting lithium, considering its rising demand in worldwide markets.
Demands remain high
Electric vehicle batteries rely heavily on lithium. While lithium carbonate prices reached their peak last year at a record high of $86,170 per tonne, prices have since plummeted this month to $52,500 per tonne.
The recent price drop can be attributed, to some extent, to a decrease in China’s demand for electric vehicles, in part due to the country’s termination of EV subsidies.
However, the main reason for the decline in prices is the surge in lithium supplies from Australia, Chile, China, and now Iran.
Lithium shortage warning
S&P Global has cautioned that the increasing demand for lithium could lead to a global shortage as early as 2024.
The provider of supplier intelligence argues that even if the current 53 lithium mining projects that cost approximately $37.8 billion annually were aggressively developed, they would still be unable to meet the worldwide demand, resulting in a deficit of 605,000 tonnes by 2030.
After the US-led economic embargo to cripple Iran’s economy, the Iranian government has taken measures to diversify its economy away from oil.
According to Press TV, Iran’s mining industry has become more active, producing billions of dollars and generating hundreds of thousands of new jobs for the country’s population.