Iran and Russia said they will cooperate on searching for lithium resources in Iran and developing an indigenous Iranian lithium extraction and processing industry. The March 11 announcement could revive Tehran’s hopes that the Islamic Republic has a major lithium reserve.
Lithium’s importance as a component in batteries and electronics makes it essential for the smartphones, laptops, and electric vehicles that form the cornerstone of the 21st century economy. The global demand for lithium could triple by 2030 as electric vehicles boom and the world shifts toward renewable energy. Control over lithium resources significantly influences the technology and energy sectors, giving countries with ample reserves both economic and political leverage.
Iran’s Entry Into the Lithium Market
In 2023, the Iranian government announced a discovery of 8.5 million tons of lithium near the western city of Hamedan, a quantity that would have propelled Iran into possession of the world’s fourth-largest lithium reserve. Within weeks, however, Iran revised that estimate downward to 500 tons, or less than 0.01 percent of the amount in its initial announcement. Many geologists believe Iran does not have considerable lithium reserves.
Now, Tehran’s cooperation with a Russian firm to exploit lithium allegedly present in its desert region suggests Iranian officials have revived hopes of indigenous lithium production. Reports indicate that the joint operation has found lithium in Qom, Isfahan, and Semnan. Iranian-Russian cooperation would be symbiotic. Iran wants both the cash and economic leverage accompanying substantial reserves. Russia seeks access to lithium due to Ukraine war-related sanctions that limit its access to the global lithium market, and it explores both in its own hinterlands and within its allies’ territory.
The identity of the Russian firm involved in the Iranian project has not been confirmed by the Iranian or Russian government, but some Iranian opposition sources have named Polar Lithium. In 2023, Russia set up Polar Lithium, a joint venture between Russian metals giant Nornickel and state-owned nuclear energy company Rosatom, to develop Russia’s own lithium resources, including Kolmozerskoye, its largest lithium mine, in collaboration with the Chinese company MCC International Incorporation Ltd. Rosatom is familiar with Iran. It has been an essential part of Tehran’s controversial nuclear program.
It is unclear why Tehran chose a Russian firm given that Chinese firms have more experience in finding, extracting, and processing lithium. It is possible Beijing refused to partner with Tehran. Regardless, the U.S. Department of the Treasury sanctioned Polar Lithium in January 2025.
Proactive Lithium Sanctions Can Stifle Potential Iranian Progress
In 2019, the United States imposed sectoral sanctions on key Iranian industrial metals, including iron, steel, aluminum, and copper, but omitted lithium from the list.
While Tehran does not yet have proven significant lithium reserves, the strategic importance of lithium justifies sectoral sanctions against Iran’s lithium industry. These sanctions would be a preemptive strike to prevent Tehran and potential investors from developing lithium resources and related industries.
This action would add a prudent layer to the sanctions regime as Washington ramps up its maximum pressure strategy to force Tehran into submission.
Saeed Ghasseminejadis a senior advisor on Iran and financial economics at the Foundation for Defense of Democracies (FDD), where he contributes to FDD’sIran Program andCenter on Economic and Financial Power (CEFP). For more analysis from Saeed and FDD, please subscribeHERE. Follow Saeed on X@SGhasseminejad. Follow FDD on X@FDD and@FDD_Iran and@FDD_CEFP. FDD is a Washington, DC-based, non-partisan research institute focusing on national security and foreign policy.