Iran’s Mineral Reserves; A Hidden Strategic Treasure

Babak Haji-Abbasi, in an interview with the website of the Strategic Council on Foreign Relations, stated: “Iran is in an exceptional position among the three major global mineral belts, namely the Himalaya, Alp-Himalaya, and Arabian-Nubian belts. Therefore, the country ranks among the top 15 countries in the world in terms of the diversity of mineral elements, and according to official estimates, the value of Iran’s discovered reserves amounts to 27 trillion dollars.”

The expert added: “In the next decade, the focus of global competition will shift from oil and gas towards rare minerals; materials that form the basis of strategic technologies, from lithium-ion batteries and microprocessors to precision guidance systems and new defense industries.” He emphasized: “Rare elements such as lithium, cobalt, nickel, magnesium, titanium, and Rare Earth Elements (REEs) not only play a key role in the production of clean energy and electric vehicles but are also irreplaceable in modern weapon systems and space equipment.”

He noted: “Iran has so far identified several zones with high lithium potential, including in Semnan, Qom, Sistan, and South Khorasan. The existence of cobalt deposits along with copper and nickel in the Zanjan and Kerman regions has also been confirmed in studies by the country’s Geological Survey.” Haji-Abbasi warned: “In the absence of technological investment and the introduction of state-of-the-art equipment, these resources could remain preserved in the ground, like many of Iran’s underground wealth.” In his opinion, “Iran’s main challenge is not a shortage of reserves, but the lack of a value chain and processing technology. While countries like Australia and Chile have tens of billions of dollars in revenue by creating processing chains and exporting high-value-added materials, Iran is still stuck at the stage of exporting raw or semi-processed materials.” He clarified: “Integrating geological knowledge with industrial policy and energy security must be placed on the agenda of the country’s decision-making institutions so that Iran can transform from a raw material seller into a technology-driven player in the global supply chain.”

Regional Cooperation with Central Asia in the Field of Rare Minerals

Haji-Abbasi emphasized: “The future of mineral resources in the region will be shaped by targeted regional cooperation.” He recalled: “Iran, Afghanistan, Tajikistan, and Kazakhstan are located on a single mineral belt that stretches from the Pamir Mountains to Azerbaijan; a belt that contains vast deposits of copper, lithium, lead, and rare earth elements.”

According to the expert in mineral resource studies, “Creating joint consortia with Central Asian countries can achieve three goals simultaneously; first, sharing technology and reducing exploration and extraction costs; second, creating secure export routes through the North-South Corridor and the port of Chabahar; and third, reducing dependence on third-party markets.”

He continued: “Currently, China controls the majority of Central Asia’s rare minerals; Iran can also become the second player in this market by leveraging historical, cultural, and geographical ties.” The expert specifically pointed to Afghanistan and said: “According to US estimates, Afghanistan has more than one trillion dollars in untapped mineral reserves; therefore, by developing border infrastructure and joint investment in the mines of northern Afghanistan, Iran can not only supply raw materials for its industries but also have a share in the economic reconstruction of the region.” He added: “Developing cooperation with Kazakhstan and Uzbekistan in the field of exchanging geological data and training human resources is a strategic opportunity for Iran. These countries have successful experience in attracting foreign investment, and Iran can reform its mining processes by modeling their legal frameworks.”

However, he warned: “Regional cooperation without active economic diplomacy will be fruitless.” Haji-Abbasi emphasized: “Mineral diplomacy must find an official place in Iran’s foreign policy.” In his view, “The Ministry of Foreign Affairs should, just as it has oil and gas diplomacy in the energy sector, create a specialized section for natural resource diplomacy in the mining sector so that Iran can utilize the capacity of organizations such as the ECO, the Shanghai Cooperation Organization, and even the Eurasian Economic Union to advance joint mining projects.”

Cooperation with China in the Global Rare Minerals Market and the “South-South” Strategy
The expert in the field of geo-economics and mineral resources added: “The global rare minerals market is rapidly transforming. China, which currently controls over 75% of the processing of rare elements, is turning this advantage into a tool of geopolitical influence.” He continued: “In the future multipolar world, countries will form strategic alliances not only for energy resources but also for mineral elements. The competition between the US, China, and the European Union over the lithium supply chain is no less than the 20th-century competition over oil.” He clarified: “Under these conditions, Iran can play an active role in the South-South axis, relying on its geopolitical position. This axis, which focuses on cooperation among developing countries in Asia, Africa, and Latin America, provides an opportunity to neutralize sanctions and create independent chains for the production and processing of minerals.”
The expert stated: “Through cooperation with China, Iran can move towards becoming a complement in the global supply chain. While China is a leader in lithium processing and extraction technology, Iran can cooperate with countries in the South in the field of supplying raw materials and converting them into industrial batteries or semi-processed products.” He suggested: “Iran should form an alliance of countries possessing rare minerals with countries such as Bolivia, Zimbabwe, and Indonesia – three major holders of lithium, cobalt, and nickel – so that, while defending their interests, they can play a role in determining the global price of these materials.”
From the expert’s perspective: “China’s approach to controlling the mineral value chain is a model that should be learned from cautiously, because Beijing places target countries in a network of interdependence through investment, technology, and project financing. Iran can utilize the same logic, but with a focus on balanced cooperation and mutual respect within the Global South.”
In conclusion, Haji-Abbasi concluded: “Mineral resources are not merely an economic opportunity, but a tool for leveraging Iran’s geopolitical position in the changing global order. If Tehran can establish a systematic link between geological knowledge, industrial policy, and international diplomacy, minerals could play the same role for Iran in the 21st century that oil played in the 20th century.”