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Litihiun Reserve in Iran
Iran has recently discovered the second-largest lithium-ion reserve next to Chile. Lithium is a highly valued metal that is an essential component in the batteries of electric vehicles and cell phones. The deposit is located in one of the western provinces of the country “Hamedan”. Hamedan is estimated to hold 8.5 million tons of the metal, making it the second-largest known lithium reserve in the world after Chile.
This is great news for Iran’s economy, which has been struggling with heavy international sanctions and a plummeting currency.
Lithium-ion Discovery Impact on Iran’s Economy
However, the addition of this new reserve to the global market could further push down the already dropping prices of lithium, due to its potential for export.
Analysts at Goldman Sachs predict a significant growth in lithium’s supply in the next two years, with a projected 34% year-on-year increase led by Australia and China, which already have some of the world’s largest supplies of the metal. The bank expects lithium prices to drop in the medium term, along with cobalt and nickel.
Limitation of The Discovery
But despite the potential economic benefits, Iran’s trading partners will be limited due to the current sanctions imposed on the country. This news comes amid a global surge in demand for electric vehicle parts, resulting in a sharp increase in the price of lithium in the past year. However, a recent drop in EV sales and slow business activity in China has led to a correction in lithium prices.
Discovery of Lithium in India
The discovery of Iran’s massive lithium reserve comes after India announced the discovery of its own reserves of the metal earlier this year. As countries continue to search for valuable resources to contribute to the global supply chain, the human impact of these discoveries should not be overlooked. Iran’s government has been accused of violently cracking down on women’s rights and anti-government protesters, highlighting the need for ethical considerations in the extraction and distribution of such resources.
Prices of Lithium-ion After the Discovery
The global lithium market could face a major shake-up with the recent announcement of Iran’s massive lithium reserve. However, the impact of this discovery on the metal’s price will largely depend on Iran’s ability to export valuable resources.
Lithium Triangle
The “Lithium Triangle” is a region located in South America that encompasses parts of Bolivia, Argentina, and Chile. It is so named due to the vast reserves of lithium that are found within the region. This area is home to the world’s largest known lithium reserves and is responsible for producing a significant amount of the world’s supply of metal.
Chile is the world’s largest producer of lithium, with an estimated 9.2 million metric tons of the metal in reserves. Argentina and Bolivia also have significant reserves, with 6.7 million metric tons and 5.4 million metric tons respectively.
| Chile | 9.2 million metric tons |
| Argentina | 6.7 million metric tons |
| Bolivia | 5.4 million metric tons |
| China | 2 million metric tons |
| United States | 1 million metric tons |
Writer’s Note
The discovery of Iran’s massive lithium reserve has the potential to significantly impact the global lithium market, with the country’s ability to export the metal playing a major role. However, the human impact of these discoveries must be considered, as well as the potential ethical concerns in the extraction and distribution of these valuable resources.
Read More:- For the First Time, Lithium Reserve found in India
