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News that construction has begun in Nevada on what will be America’s largest lithium mine has been dwarfed by reports that Iran discovered the second-largest lithium reserve in the world. The vital mineral — often called “white gold” — is a highly-prized component in the rechargeable batteries used in cellphones and electric cars.
As Straight Arrow News contributor Peter Zeihan explains, finding lithium is one thing…mining and exporting it is another.
Excerpted from Peter’s Mar. 9 “Zeihan on Geopolitics” newsletter:
The Iranians have stumbled upon what every “Green” dreams of … a massive store of lithium ore. If the numbers prove true, it would be the second-largest deposit ever discovered. But is it too good to be true?
Before I go crushing your dreams, I want to acknowledge that this is an exciting discovery, and it’s obviously a good thing that we found more lithium. However, it will be a while before this lithium moves the needle … if at all.
The lithium was found in a very inconvenient spot, so transportation is going to be a pain in the ass. If the Iranians want to process this stuff themselves, they’ll have to build out the infrastructure from scratch. On top of all that, Iran’s policy towards private and foreign investment is … less than friendly. So maybe we’ll hold off on the lithium parties for now.
