Iran is among the small number of countries that has adequate amount of rare underground elements and precious metals and discovery and its access to them began with exploration operations in mineral zones Since 2013. Discovery of these reserves was one of the developments that took place during these explorations, and rare metals like lithium in various parts of the country, mainly in the west, in adequate amounts were discovered. Mining operators are looking for the beginning of industrial extraction of this material and now they are in the semi-industrial extraction phase.
What is lithium?
Lithium, whose existence is one of the necessities of the new technologies in modern world, is a silver-white and soft alkaline metal with an atomic number of 3. This element is the lightest metal and the least dense solid element under standard conditions of temperature and pressure.
Ostensibly, lithium has no role in the life of the animals and herbs and they can live without it, but practically in all of the living organs, small amounts of lithium can be tracked. Lithium ion, which is found in the form of various salts, affects human nerves and can help as a medicine in the treatment of bipolar disorder.
Lithium was first discovered in 1817 in Sweden, and it turned out that the alloy of this metal with aluminum, cadmium, copper and manganese can be used in the construction of parts of high-flying aircraft. Lithium’s formation is highly scattered, but due to its great reactivity, it does not exist in nature in pure form and is always seen as a combination with one or more elements or other compounds. This metal forms a small part of all igneous rocks and is also present in many natural brines.
Lithium is a vital part of rechargeable batteries, used commonly in phones, laptops, and electric vehicles. Currently, an alloy of lithium and aluminum is used in the aircraft industry, which is light, flexible, strong and resistant.
In addition, lithium has a large tensile force and due to its light weight, it is a very suitable option for light-weight and high-energy batteries. Also, this mineral along with lead produces an alloy that is used in train wheel bearings. Another area of usage of lithium is pharmaceutical industry.
In using lithium both in industry and in pharmaceutical industry taking into consideration a point is crucial: There is a fine line between its being useful to industry and toxic and dangerous to the human and environment.
What countries are lithium-rich?
With 8 million tons of lithium reserves, Chile has the largest amount of reserves of this metal in the world. Australia and Argentina rank second and third with 2.7 million tons and 2 million tons respectively.
Lithium has not reached the processing and production phase in Iran. Economicality of its processing and production is highly important as only a few developed countries, like Japan and South Korea, have the technology for its processing. Taking control of the market of electric vehicles is the reason for attention to Iran's lithium.
In 2016, lithium was sold in the form of metal in the world markets at a price of around $160 per kilogram.
World reactions to Iran's lithium discovery
Upon its announcement, the news drew international reactions. Indian Express news website published a report on the discovery, saying: “This discovery would be a major boost for Iran, whose economy has suffered under US sanctions and embargoes for decades. Given lithium’s salience in making batteries, any transition away from fossil fuels is expected to heavily rely on lithium. This is Iran’s first lithium find.”
“Iran now has the largest lithium reserves outside of South America. Last year, the US Geological Survey estimated the world's total lithium reserves at roughly 89 million tons, meaning the discovery could be close to a tenth of the world's lithium,” Quartz news addressed the discovery.
Also, Sputnik news of Russia reported on the discovery, saying that it would render ineffective the Western sanctions. This is a victory for a country whose economy is isolated by sanctions, the news outlet said.
Lithium role in Chinese-Iranian relations
China, one of the largest Iranian economic partners, is seeking new lithium resources for its thriving battery industry. Home to the world's largest market for electric vehicles, China has invested heavily in ramping up lithium production in new markets, including a recent billion-dollar investment in a state-run lithium refinery in Bolivia.
China and Iran have close ties and after Trump reinstated sanctions on Iran in 2020, Beijing turned into the main purchaser of Iranian oil. The two countries would very likely take advantage of the Iranian lithium reserves under a partnership.
Israeli concerns about Iran's the discovery
Anat Hochberg-Marom, an Israeli strategic affairs expert, told Maariv newspaper that lithium discovery in Iran can change the regional power balance in the region and grants Tehran an “unprecedented economic and geopolitical” position.
“Israel is following this issue closely to see how Tehran will try to use this discovery to its advantage,” he continued.
The newspaper added, citing the expert, that “Iran's military power and the resumption of relations with Arab countries, especially Saudi Arabia, the UAE, Bahrain and Egypt, in addition to the country's naval exercises with countries such as India and Pakistan, is the main source of concern for Israel.”
Maariv predicted that Iran's economy and geopolitical influence will soon improve considerably and this is happening in the shadow of discovery of a 8.5-million-ton lithium deposit, the second after Chile, in Hamedan province in west of the country.
The Israeli newspaper went on, saying: “Iran, thus, holds 10 percent of the world's white gold reserves, which are currently estimated at 89 million tons, and this discovery, which can save Iran's economy and apparently neutralize the sanctions imposed on it, is a winning card for this country.”
According to Hochberg-Marom, this discovery can substantially influence the world energy and minerals markets, as well as the lithium battery and electric vehicle industry. It is also expected to lead to massive changes in the global economy and policy and bring back the Middle East to the center of attention.
The newspaper admitted that this discovery gives Iran an unprecedented and huge opportunity in the economy and energy sector. Despite the degree of quality and cost of processing and producing lithium, addressing about one-tenth of the world's lithium consumption and having this strategic raw material under control will make Iran an important geopolitical actor in global politics and economy.
In the shadow of worsening climate change crisis, discovering this lithium field, along with nuclear energy, will be a source of Iran's political, economic, and energy influence, said Maariv, adding that the Islamic Republic is expected to capitalize on all these issues and their reflections in the region and also in the world.
This issue, thus, not only will tremendously increase Iran's influence, but also beat out influence of the Persian Gulf Arab monarchies, specifically the major oil producers of them like Saudi Arabia and the UAE, and tip the scales in Iran's favor.
This will strengthen Tehran’s negotiating position in
security and economic agreements and coalitions and transform it into a
heavyweight among other West Asian actors and redirect the attention
from oil market to lithium industry in the region.
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