ISLAMABAD: In a landmark breakthrough for Pakistan’s energy and mining sectors, Oil and Gas Development Company Limited (OGDCL) has confirmed the presence of high-grade lithium in geothermal formation water from Sindh, marking the country’s first significant discovery of lithium-bearing geothermal brines and positioning Pakistan among emerging players in the global critical minerals market.
The discovery was made through advanced geochemical analysis of produced formation water extracted from a successfully tested high-temperature geothermal well under OGDCL’s pilot geothermal programme in Sindh. According to senior company officials, the recorded lithium concentrations are comparable to some of the world’s leading lithium-rich geothermal brine projects currently under commercial development in Europe and North America.
Formation water refers to naturally occurring saline water trapped deep underground alongside oil, gas and mineral deposits for millions of years. Once brought to the surface during oil and gas production, it becomes known as produced water, which can serve as a valuable source for lithium extraction using modern direct lithium extraction (DLE) technologies.
The discovery marks Pakistan’s entry into the rapidly expanding global race for critical minerals, with lithium regarded as one of the most strategically important resources driving the global clean energy transition.
Lithium is a key raw material used in electric vehicle (EV) batteries, grid-scale energy storage systems, smartphones, laptops and numerous advanced technologies. Approximately 80% of global lithium demand is linked to rechargeable batteries for electric mobility, making the mineral indispensable to the future of sustainable transportation and renewable energy integration.
Beyond clean energy applications, lithium is also widely used in the aerospace, defence, healthcare, electronics and manufacturing industries. It is an essential component in aircraft, satellites, specialty glass and ceramics, industrial lubricants, aluminium alloys, specialised chemicals and pharmaceutical products, including medications used to treat bipolar disorder.
OGDCL officials emphasized that while the initial findings are highly encouraging, further technical evaluation will be required to determine the size, continuity and commercial viability of the resource.
The company has launched an expanded exploration programme that will include detailed brine chemistry analysis, resource confirmation studies, and comprehensive assessments in accordance with internationally recognised reporting standards. These studies will help determine the regional extent and economic potential of the lithium-bearing geothermal formations.
To support the next phase of exploration, OGDCL is working closely with leading international consultants, bringing global technical expertise to Pakistan’s emerging geothermal and critical minerals sector. The collaboration aims to ensure that future resource evaluations meet international best practices and investment standards.
Globally, geothermal brines are increasingly being recognised as one of the most sustainable sources of lithium because they enable simultaneous production of renewable geothermal energy and critical battery minerals, significantly reducing the environmental footprint associated with conventional hard-rock mining and evaporation ponds.
If commercially recoverable reserves are confirmed, the discovery could have transformative implications for Pakistan’s economy. Domestic lithium production has the potential to strengthen the country’s position in global critical mineral supply chains, attract foreign investment, support downstream battery manufacturing industries and create new opportunities for industrial development and exports.
The breakthrough also underscores the vast untapped potential of Pakistan’s subsurface resources and reflects OGDCL’s strategy to diversify beyond conventional oil and gas exploration. By expanding into geothermal energy and critical mineral exploration, the state-owned energy company is positioning itself at the forefront of the country’s evolving energy landscape while supporting Pakistan’s long-term transition towards a diversified, sustainable and resource-driven economy.
Story by Khalid Mustafa
