ISLAMABAD: In a major step towards developing Pakistan’s first indigenous lithium industry, the Oil and Gas Development Company Limited (OGDCL) has signed an agreement with the Pakistan Institute of Nuclear Science and Technology (Pinstech) to develop technology for the commercial-scale extraction of lithium from geothermal brines following the discovery of high-grade lithium in a well in Khairpur, Sindh. The state-owned exploration and production company has identified eight to 10 additional wells in Sindh for geothermal brine exploration to determine the extent of lithium-bearing formations and search for more deposits of the strategic mineral, top officials familiar with the development told The News.
The move follows OGDCL’s confirmation of Pakistan’s first significant lithium discovery in geothermal brines after advanced geochemical analysis of produced formation water from the Wahid Bakhsh Well in Khairpur district revealed 275 milligrams of lithium per litre (mg/L) — more than three times the 90 mg/L concentration generally considered sufficient under international standards to justify commercial evaluation.
Officials said the encouraging results have prompted OGDCL to accelerate exploration activities while simultaneously initiating efforts to develop indigenous lithium extraction technology in collaboration with Pinstech. The discovery has also generated interest from the Heavy Mechanical Complex (HMC), which is exploring the use of locally produced lithium for electric vehicle batteries and defence-related applications.
Sources said HMC is planning to establish a large-scale electric vehicle manufacturing facility, making domestic lithium supplies strategically important for Pakistan’s emerging clean-energy and advanced manufacturing sectors.
Lithium was identified during advanced geochemical analysis of formation water produced from a successfully tested high-temperature geothermal well under the OGDCL’s pilot geothermal programme. Company officials described the discovery as Pakistan’s first confirmed occurrence of lithium in geothermal brines.
The breakthrough places Pakistan among a growing group of countries exploring geothermal brines as a sustainable source of lithium, one of the world’s most sought-after critical minerals because of its indispensable role in the global transition to clean energy. Lithium is the backbone of rechargeable batteries used in electric vehicles, grid-scale energy storage systems, smartphones, laptops and a wide range of next-generation technologies. Nearly 80 per cent of global lithium demand comes from electric vehicle batteries, and consumption is projected to rise sharply over the coming decade as countries accelerate the shift towards electrification and low-carbon energy systems.
Beyond batteries, lithium is widely used in aerospace, defence, specialty chemicals, glass and ceramics, industrial lubricants, aluminum alloys, consumer electronics and pharmaceutical products, making it one of the world’s most strategically important minerals.
According to OGDCL officials, the lithium concentration recorded at the Wahid Bakhsh Well is comparable to higher-grade geothermal brine projects currently under commercial development in Europe and North America. Globally, geothermal brines are increasingly regarded as one of the most environmentally sustainable sources of lithium because they allow simultaneous production of geothermal energy and extraction of the critical mineral, significantly reducing the environmental footprint associated with conventional mining.
Officials cautioned that although the discovery represents a significant scientific and industrial milestone, extensive technical work remains necessary before commercial production can begin. The OGDCL has launched a comprehensive evaluation programme comprising detailed brine chemistry studies, reservoir mapping, resource confirmation and economic feasibility assessments in accordance with internationally-recognised standards. The company is also working with leading international consultants to ensure that future resource estimates and feasibility studies meet global technical benchmarks.
If subsequent exploration confirms commercially recoverable reserves, the discovery could significantly strengthen Pakistan’s position in global critical mineral supply chains, attract foreign investment, support the development of a domestic battery and electric vehicle industry, reduce reliance on imported battery materials and create new opportunities for industrial growth and exports.
Beyond its economic potential, the discovery highlights Pakistan’s untapped subsurface resources and reflects the OGDCL’s strategy of diversifying beyond conventional oil and gas exploration into geothermal energy and critical minerals — two sectors expected to play a central role in the global energy transition.
While commercial production will depend on the outcome of detailed scientific, technical and economic studies, the confirmation of high lithium concentrations in Sindh marks a historic milestone for Pakistan’s mining and energy sectors and could pave the way for the country’s emergence as a new player in the rapidly expanding global critical minerals market.
