Lithium, a strategic metal renowned for its diverse applications across various industries, holds substantial deposits within Pakistan that present promising economic prospects. Presently, rigorous studies are underway to assess the technical and economic feasibility of exploring, exploiting, evaluating, and developing these lithium reserves.
Lithium, a strategic metal renowned for its diverse applications across various industries, holds substantial deposits within Pakistan that present promising economic prospects. Presently, rigorous studies are underway to assess the technical and economic feasibility of exploring, exploiting, evaluating, and developing these lithium reserves.
These reserves have been identified in several regions across Pakistan, including Balochistan (Hamun-e-Mashkel, Chaghai District), Gilgit-Baltistan (Shigar Valley and Skardu), Khyber Pakhtunkhwa (Chitral District and Waziristan mountainous region), Azad Jammu & Kashmir (Neelum Valley), as well as the Cholistan-Thar deserts spanning Punjab and Sindh. Recent initiatives by the Geological Survey of Pakistan (GSP) encompass geochemical exploration and economic assessment of lithium deposits in Chitral, Shigar Valley, and Skardu. Furthermore, geological and geochemical mapping, along with sampling activities, have been initiated for lithium and associated metals’ exploitation in other parts of Khyber Pakhtunkhwa and Gilgit-Baltistan, including Dasu and Gilgit.
In a recent significant development, a cooperative framework agreement was signed on November 9, 2022, between the China-Pakistan Joint Research Centre on Earth Sciences (CPJRC), with headquarters in Islamabad, and Tianqi Lithium Corporation (China), a global leader in lithium product development, manufacturing, and lithium-ion technology advancement. According to this agreement, the two entities will collaborate on investigating and researching lithium resources within Pakistan. Concurrently, preparatory efforts have commenced for mining sites in mineral-rich Balochistan, particularly in Chagai, Saindak, and Dasht-e-Kun areas. These endeavours are being undertaken by Chinese and Canadian companies, aiming to extract copper, gold, silver, and lithium.
Lithium, often referred to as “white gold,” is currently one of the most prized minerals globally due to its multifaceted applications. It is predominantly concentrated in 25 countries worldwide. As per the latest data from the United States Geological Survey (USGS), the world’s identified lithium resources amount to 98 million tons, of which 26 million tons are classified as proven reserves. Bolivia leads the pack with 21 million tons of lithium measured deposits, trailed by Argentina (20 million tons), Chile (11 million tons), Australia (7.9 million tons), and China (6.8 million tons). Interestingly, Pakistan’s neighbouring nations have emerged as new sources of lithium. In February 2023, India unveiled 5.9 million tons of lithium deposits in Indian-occupied Jammu & Kashmir, an area noted for its rich mineral resources. Similarly, Iran made its inaugural lithium discovery in March 2023, identifying 8.5 million tons of inferred lithium reserves in the Hamedan province. Additionally, Afghanistan is believed to possess extensive untapped lithium deposits in the Konar and Nurestan valleys.
In 2022, global lithium mine production reached 130,000 tons, with consumption at 134,000 tons. Leading lithium producers include Australia, Chile, and China, contributing over 90 percent of the global output. Various lithium alloys and compounds, such as lithium carbonate, lithium oxide, lithium hydroxide, and lithium chloride, are produced industrially. While lithium demand has been on a rapid upward trajectory, a recent global economic downturn, triggered by the slowdown in electric vehicle (EV) sales and production (where lithium is a vital component), has led to a temporary decline in demand. Consequently, the price of lithium metal has experienced significant fluctuations, ranging from a record $97,000 per ton in July 2021 to $60,000 in August 2022, and further plummeting to $54,700 in May 2023 (approximate prices in US dollars).
The applications of lithium span a wide spectrum. Its paramount role lies in the automotive and energy sectors, powering high-performance rechargeable lithium storage batteries in electric vehicles (EVs) and energy storage systems, particularly in renewable energy setups. Lithium batteries also find extensive use in electronic devices, mobile phones, cameras, and optics. Its strategic significance extends to high-tech products like aerospace devices and rocket propellant coolants in nuclear processes. While historically recognized in metallurgy, glass, and pharmaceutical industries, lithium’s recent applications include synthetic rubber production.
The global market for lithium metal was valued at $4.3 billion in 2022 and is projected to grow to $13 billion by 2032, considering the anticipated swift recovery in demand. The International Energy Agency (IEA), in its July 2023 document titled “Critical Minerals Market Review 2023”, has estimated huge demands of lithium the world over, along with cobalt, nickel, and copper, to achieve global targets of green energy and climate resilience. The report highlights that among the different materials the investment in the development of lithium saw the sharpest increase---a jump of 50 percent. Presently, Pakistan is reliant on lithium imports, primarily from China, Germany, and the US, amounting to millions of dollars annually, in overall terms. Pakistan imports lithium oxide, lithium hydroxide, and lithium carbonate for industrial uses, in addition to lithium-ion batteries and solar panels.
To accelerate the realization of the lithium project in Pakistan, the newly established Special Investment Facilitation Council (SIFC) could incorporate it within its portfolio to attract foreign investment and related technology. The rapid development, processing and refining of lithium resources align with Pakistan’s ambitious goals of fostering green transportation and clean energy adoption. The government’s initiatives, including electric vehicle production and the transition to wind and solar energy sources, stand to benefit immensely from the swift progression of this endeavour. Beyond contributing to energy security and reducing the import bill, this initiative could serve as a catalyst for Pakistan’s economy, generating socio-economic benefits, technological competitiveness, and promoting long-term exports.
The writer is retired chairman of the State Engineering Corporation
