Often referred to as “white gold”, lithium is a key material for the batteries of electronic devices and electric cars. Iran has discovered a huge deposit – estimated to reach 8.5 million tons of lithium – in the north of the country. If the estimates for the volume of the deposit are confirmed, then it will be the second largest deposit in the world after Chile, where there are 9.2 million tons of lithium.
Often referred to as “white gold”, lithium is a key material for the batteries of electronic devices and electric cars. Its price soared in 2022 due to higher demand for electric car equipment, a “heart attack” in the global supply chain and high inflation internationally.
Lately, however, there has been a correction in the market amid falling sales of electric cars and low business activity in China, which is also the largest market for the electric vehicle industry.
Pumping such a large amount of lithium into the international market may further accelerate the downward trends in the price. At the same time, however, it also has the potential to stimulate the local economy, which, despite the high production potential of oil and natural gas, has been “on its knees” due to Western sanctions and the country’s isolation from the global financial system.
