ISLAMABAD: Pakistan has taken a significant step towards entering the global critical minerals landscape after the Oil and Gas Development Company Limited (OGDC) confirmed the presence of lithium in ‘formation water’ in Sindh, at concentrations comparable to some of the world’s leading lithium-bearing geothermal brines.
The discovery was made during advanced geochemical analysis of ‘produced’ formation water from a successfully tested high-temperature geothermal well under OGDC’s pilot geothermal programme in Sindh, marking what the company describes as a first for Pakistan, top OGDC officials told The News.
Formation water is salty underground water that’s been trapped in rocks for millions of years alongside oil, gas, or trace minerals, including lithium. Produced water is that same formation water brought to the surface during oil and gas production. Companies now extract lithium from produced water, using it as a brine source for batteries.
The presence of lithium has placed Pakistan on the map of countries exploring geothermal brines as a potential source of the critical mineral, which has become indispensable to the global clean energy transition. Lithium is a key component in electric vehicle batteries, grid-scale energy storage systems and a wide range of next-generation technologies, with demand expected to grow rapidly over the coming decade as countries accelerate their shift towards low-carbon energy solutions. It has emerged as one of the world’s most strategic minerals, driven by soaring demand for rechargeable batteries that power the global transition to clean energy. Around 80 per cent of global lithium consumption is linked to electric vehicle (EV) batteries, making it a critical component for cars, buses, trucks and two-wheelers produced by leading automakers. The mineral is also increasingly used in large-scale energy storage systems that help store electricity generated from solar and wind power, supporting grid stability and accelerating the shift towards renewable energy.
Beyond the energy sector, lithium plays a vital role in consumer electronics, aerospace, defence, healthcare and manufacturing. It is found in smartphones, laptops and wearable devices, while its lightweight properties make it valuable for aircraft, satellites and military equipment. Lithium compounds are also used in glass and ceramics, industrial lubricants, aluminium alloys, specialised chemicals, and medicines for bipolar disorder. As governments and industries invest heavily in electrification and clean technologies, global demand for lithium is expected to rise sharply, reinforcing its position as one of the world’s most important critical minerals. According to OGDC officials, the lithium concentrations recorded during testing are comparable to higher-tier lithium-bearing geothermal brines reported internationally, including projects currently under commercial development in Europe and North America. Around the world, geothermal brines are increasingly being viewed as one of the most sustainable sources of lithium because they offer the possibility of extracting the critical mineral while simultaneously generating geothermal energy, thereby reducing the environmental footprint associated with conventional mining. While the discovery represents a promising breakthrough, the officials emphasised that further technical work will be undertaken to determine the scale and commercial viability of the resource. The company has planned an expanded evaluation programme that will include detailed brine chemistry profiling, resource confirmation studies, and assessments aligned with international standards. They will help establish the regional extent, continuity and economic potential of the lithium-bearing formation.
Officials said OGDC’s technical teams are already working closely with leading international consultants to guide the next phase of exploration and resource evaluation. The collaboration is expected to bring global expertise to Pakistan’s emerging geothermal and critical minerals sector, ensuring that future assessments meet internationally recognised benchmarks.
The discovery could have far-reaching implications for Pakistan’s economy if subsequent studies confirm commercially recoverable resources. As governments and industries worldwide compete to secure supplies of critical minerals essential for electric mobility and renewable energy technologies, the development of domestic lithium resources could strengthen Pakistan’s strategic position in global supply chains, attract foreign investment, and create new opportunities for industrial growth.
Beyond its economic significance, the breakthrough highlights the untapped potential of Pakistan’s subsurface resources and reflects OGDC’s efforts to diversify beyond conventional oil and gas exploration. By venturing into geothermal energy and critical minerals, the state-owned energy company is positioning itself at the forefront of emerging energy technologies while supporting the country’s long-term transition towards a more diversified and sustainable resource base.
