Iran claims it has discovered the world's second-largest lithium reserve.
If confirmed, the reserve could make the country an EV battery production powerhouse.
Large amounts of the metal have been found in the western province of Hamedan.
- The Iranian Ministry of Industry, Mines, and Trade believes the country could hold up to 8.5 million tons of lithium.
- If confirmed, the material would significantly boost Iran's economy, as the country has continually struggled due to sanctions from Western nations.
- This reserve would make Iran the second-largest source of lithium. Chile, which has 9.2 million metric tons, is the first.
- Iran has been sanctioned due to its ties with Russia, specifically because the country is believed to have provided weapons in the war against Ukraine.
- In terms of resources, Iran is also one of the world's top producers of oil and gas, but its export levels remain low.
Lithium is considered to be one of the most precious resources of the future due to its importance in the manufacturing of EV batteries, phones, computers, etc.
- The U.S., which currently holds around 3% of the world's global lithium reserves, is planning to invest over $7B in critical minerals mapping, extraction, refinery, and overall battery supply chain.
- Goldman expects lithium's supply to grow 34% YoY, led by Australia and China.
