Afghanistan seizes lithium batteries

Is Afghanistan the Saudi Arabia of lithium?

The global race for lithium, a crucial component in electric vehicle (EV) batteries, has shifted attention to Afghanistan, hailed as the “ Saudi Arabia of lithium.” As China dominates the EV market, Afghanistan’s vast lithium deposits have become a geopolitical focal point.

Why does Afghanistan need lithium?

Afghanistan sits atop vast lithium reserves and faces a pivotal decision: leverage this mineral wealth to assert national sovereignty and drive local development or risk exploitation by foreign powers eager to dominate the global supply chain for electric vehicles (EV).

How much is the lithium buried in Afghanistan worth?

A decade earlier, the U.S. Defense Department, guided by the surveys of American government geologists, concluded that the vast wealth of lithium and other minerals buried in Afghanistan might be worth $1 trillion, more than enough to prop up the country’s fragile government.

What happened to the lithium market in Afghanistan in 2021?

Around the time Kabul fell to the Taliban in August 2021, a boom shook the world’s lithium market. The mineral’s price skyrocketed eightfold from 2021 to 2022, attracting hundreds of Chinese mining entrepreneurs to Afghanistan.

Could Afghanistan's lithium deposits rival Bolivia's?

Some reports have said Afghanistan’s lithium deposits could rival those of the world’s biggest known reserves in Bolivia, according to Nomura. Talks were held over recent weeks with the Taliban over access to Mes Aynak, south-east of Kabul, one of the world’s biggest copper deposits which Chinese groups previously had a licence to mine.

Does Afghanistan need a lithium monopoly?

Afghanistan must limit dependence on investments driven mainly by external strategic interests. Maintaining control over its lithium reserves is equally critical, necessitating a robust national framework for extraction and processing.