Minerals Worth 1,000 Trillion Won Fall to Taliban... "World's Largest Lithium Reserves"

Afghanistan May Have the World's Largest Lithium Deposits
"Significant Technology Needed for Mineral Utilization... Taliban Likely to Face Development Challenges"
International Sanctions and Investor Avoidance Also Pose Risks

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] As the Islamic militant group Taliban took control of Afghanistan after 20 years, it is reported to have gained access to minerals worth $1 trillion (approximately 1,170 trillion KRW) buried throughout Afghanistan. In particular, there is speculation that Afghanistan's lithium reserves may be the largest in the world. However, there are also forecasts that the Taliban regime will find it difficult to develop mineral resources due to international sanctions and investor avoidance.

According to CNN on the 18th (local time), Afghanistan is said to have large deposits of minerals worth $1 trillion, including iron, copper, gold, rare earth elements, and lithium used in rechargeable batteries.

Rod Skunover, a scientist and security expert, explained in an interview with CNN, "Afghanistan is not only one of the regions rich in traditional minerals but also abundant in minerals needed for the emerging economies of the 21st century," adding, "In the past, minerals were not mined due to security issues, lack of infrastructure, and severe drought."

In fact, Afghanistan has large deposits of rare earth elements such as neodymium, as well as resources like lithium and cobalt.

The U.S. government estimates that Afghanistan's lithium reserves could rival Bolivia, currently the country with the largest lithium reserves in the world.

Accordingly, there are prospects that if the Afghan government begins full-scale mineral production, it could achieve significant economic growth.

A U.S. Geological Survey official stated in the journal Science in 2010, "If Afghanistan starts developing its mineral resources and maintains peace for several years, it could become one of the wealthiest countries in the region within 10 years."

With the Afghan government now under Taliban control, it is anticipated that the Taliban may actively pursue the development of these mineral resources.

Skunover predicted, "The Taliban may use new power to utilize mineral resources," adding, "Some mines could be consolidated, and these mines would no longer be regulated."

However, experts analyzed that due to the chaotic situation in Afghanistan and internal and external factors such as U.S. sanctions, immediate mineral development is unlikely.

An expert formerly with the International Monetary Fund (IMF) explained, "Most of Afghanistan's minerals remain in the ground," adding, "However, utilizing minerals like lithium and rare earth elements requires a lot of time, investment, and technology."

He continued, "Private investors will not take the risk," emphasizing, "Global companies and investors have increasingly higher standards for environmental, social, and governance (ESG) criteria."

A battery industry expert said, "Investors will prioritize other emerging countries over Taliban-led Afghanistan."

Skunover also said, "The current situation is unlikely to change immediately under Taliban rule," adding, "The Taliban must prioritize broad security and humanitarian issues."

CNN reported that the fact that the Taliban is on the U.S. Treasury Department's sanctions list could also be a major obstacle to Afghanistan's mineral development.

Although China, Pakistan, and India have shown interest in developing Afghanistan's mineral resources, CNN added that there are many practical constraints.

This content was produced with the assistance of AI translation services.