Lithium is often extracted from the via evaporating groundwater, a costly environmental process. (Photo via Shutterstock)

The Iranian government claims it has discovered a massive deposit of lithium, potentially holding 8.5 million tons of the rare element.

Mohammad Hadi Ahmadi, an official at Iran’s Ministry of Industry, Mines and Trade, announced the discovery on Iranian state television. He added that this was the first lithium deposit found in the mountainous Hamedan province in the west of Iran.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

If the 8.5 million-ton estimate is accurate, this means Iran now holds the second-largest lithium reserve in the world. It will be the largest deposit outside of South America, second only to a 9.2 million-ton deposit in Chile. With global lithium reserves estimated at 89 million tons, Iran may now possess almost one tenth of the world’s lithium supply.

Lithium prices have skyrocketed in recent years, thanks partly to increased demand for electric vehicle batteries containing the element. However, analysts from Goldman Sachs and Bank of America predict that lithium prices will drop in Q1 2023.

The quality of the deposit, as well as Iran’s ability to mine and export it, remains to be seen. Regardless, this marks a significant turning point in the future of lithium mining.

See Also:

The discovery could potentially have significant geopolitical implications, with Russian state media outlet Sputnik declaring that Iran’s discovery “rendered western sanctions worthless” shortly after the announcement was made. Additionally, China could become a major purchaser of Iranian lithium as its battery industry requires increased amounts of the element.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.