Iran lithium field discovery to change balance of power: Israeli media
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Iran's discovery of lithium fields on its territories is sending shockwaves within the Israeli occupation, with the latter saying it would lead to a major geopolitical shift.
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Construction continues at the Thacker Pass lithium mine on April 24, 2023, near Orovada, Nevada (AP)
The discovery of the Iranian lithium reservoir could lead to a shift in the regional balance of power and grant Tehran an unprecedented geopolitical and economic position, Israeli geopolitics expert Anat Hochberg Marom told Israeli Maariv newspaper on Saturday.
She added that "Israel" will closely monitor how Tehran will try to use this discovery to its advantage.
The newspaper said Iran's military strength and recent thawing of relations with Arab countries, particularly Saudi Arabia, the United Arab Emirates, Bahrain, and Egypt, as well as its military exercises at sea, including with India and Pakistan, pose a significant concern for the Israeli occupation.
The newspaper also noted that Iran was strengthening its strategic relations with Russia, not to mention China, along with its close ties with Indonesia, the largest country in the Muslim world.
It is expected that Iran's economic position and geopolitical influence will grow even greater soon, especially in light of the discovery of a massive lithium field containing 8.5 million tons of the precious mineral, making it the second-largest in the world after Chile. It is located in the Hamedan province in western Iran.
Thus, this discovery is not only significant because it holds 10% of the world's "white gold" reserves, currently estimated at around 89 million tons, but also because it has the potential to buff the Iranian economy and seemingly nullify the effectiveness of the imposed sanctions. It is considered a "winning trump card" for the Islamic Republic.
According to the Israeli expert, this discovery could have a significant impact on global energy and mining markets, as well as the global battery and electric vehicle industries. It is expected that all of this will lead to long-term changes in the global economy and politics, shifting the balance of power once again to the Middle East.
A senior official in the Iranian Ministry of Industry and Mines stated that the world's largest lithium reservoir is located outside of South America (which represents 58% of global resources), and it is the second-largest reservoir after the one in Chile, which contains 9.2 million tons of lithium.
This mineral is considered the "crown jewel" due to its immense value and importance in battery production for various electronic industries, including electric vehicles, laptops, mobile phones, solar panels, drones, and energy storage purposes.
A turning point in the energy market
The Israeli newspaper said the discovery offers significant economic opportunities and rare energy resources for the Iranian government.
It is already evident that by controlling about 10% of the world's lithium consumption and having dominance over this strategic raw material, Iran will emerge as a major geopolitical player in global politics and economy.
In the face of the escalating climate crisis, the lithium field, along with other energy sources, including nuclear energy, provides power, political influence, economic strength, and energy for the Tehran government.
It is expected that all these aspects and their implications will be leveraged to benefit the region, including the international arena.
Consequently, not only is it likely to significantly enhance Iran's influence, but it may also surpass that of Gulf states, namely major oil producers in the world, particularly Saudi Arabia and the United Arab Emirates. This situation could shift the balance of power and regional dynamics in Iran's favor.
Without lithium in trade, Iran traded with Iraq, the UAE, Saudi Arabia, Qatar, Bahrain, and Kuwait, 50.08 million tons of goods, worth $29.22 billion, during the first 10 months of the current Iranian year, registering a 0.08% year-on-year rise in weight and 15.43% year-on-year increase in value, according to the latest data released by the Islamic Republic of Iran Customs Administration.
Iran’s top trade partner was the UAE, with 20.27 million tons (up 5.48%) worth $19.77 billion (up 17.42%). Iraq follows with 24.33 million tons (down 9.97%) worth $9.08 billion (up 10.47%) and Kuwait with 4.57 million tons (up 62.98%) worth $181.01 million (up 32.45%).
During the same period, Iran’s non-oil exports to the six states hit 38.93 million tons, valued at $14 billion, to record a 2.9% and a 23.91% rise in terms of weight and value respectively.
The finding would strengthen Iran's negotiating position within various economic and security alliances and agreements, shifting the focus of attention from the oil market to the lithium and "white gold" mining industries in the region, the Israeli newspaper explained.
From a medium to long-term economic perspective, lithium prices, which have been rising in recent years due to increasing global demand and demand for lithium-ion batteries for electric vehicles, are expected to maintain a similar trend, significantly enriching the Iranian economy.
International victory
Furthermore, the newspaper stated that this discovery represents a victory in consciousness against the United States and its allies, especially "Israel". It could lead to stronger relations with China and additional countries in Southeast Asia, particularly Indonesia, and enhance the relations between the Middle East and Asia.
From Tehran's perspective, the discovery already increases its ability to maneuver among a large number of players, potentially reducing its reliance on the United States and the West.
The newspaper concluded by stating that there is no doubt that Iran, as a nuclear threshold state, possesses political, economic, and energy capabilities, along with boldness, development, and high motivation. Especially with the discovery of the lithium field, it is expected to be "extremely significant" and much more than it already is.
The first lithium deposit was discovered by Iranian geologists in the northwestern province of Hamadan, and the reserves are assessed at 8.5 million tonnes.
Molabeigi pointed to the world's limited lithium reserves and noted that it is a key element needed in manufacturing electric batteries, other advanced industries, strategic alloys, and defense industries.
