A first for Pakistan: OGDC confirms world-class lithium concentrations in geothermal brines

ISLAMABAD: In a breakthrough that could reshape Pakistan’s position in the global critical minerals landscape, the Oil and Gas Development Company Limited (OGDC) has confirmed the presence of lithium in geothermal formation water at concentrations comparable to some of the world’s leading lithium-bearing brine projects.

The discovery was made through advanced geochemical analysis of produced formation water recovered during successful testing of a high-temperature geothermal well under OGDC’s pilot geothermal programme. According to the company, the lithium concentrations are comparable to higher-grade geothermal brines currently under commercial development in Europe and North America, marking the first confirmed occurrence of its kind in Pakistan.

The announcement comes at a time when lithium has become one of the world’s most strategically important minerals, underpinning the production of electric vehicle batteries, grid-scale energy storage systems and a wide range of clean-energy technologies. As governments accelerate the shift towards low-carbon economies, global demand for lithium is projected to grow several-fold over the coming decade, placing countries with domestic resources in an increasingly advantageous position.

Diversifying beyond hydrocarbons

The discovery represents a significant diversification opportunity for OGDC, Pakistan’s largest exploration and production company, whose core business has long been oil and natural gas. Established in 1961, the state-owned enterprise operates more than 50 producing oil and gas fields and remains the country’s leading upstream energy company as well as one of the largest firms listed on the Pakistan Stock Exchange.

OGDC currently produces approximately 33,942 barrels of crude oil, 706 million cubic feet of natural gas and around 704 tonnes of LPG per day, accounting for a substantial share of Pakistan’s domestic hydrocarbon output and playing a critical role in enhancing the country’s energy security.

Beyond its hydrocarbon operations, OGDC has emerged as one of Pakistan’s most financially resilient state-owned enterprises, consistently generating strong profits and maintaining the financial capacity to invest in frontier exploration and new resource development.

From oil and gas to critical minerals

The lithium discovery reflects a broader transformation underway in the global energy industry, where traditional oil and gas companies are increasingly expanding into critical minerals required for the energy transition.

Unlike conventional hard-rock mining, lithium extraction from geothermal brines is regarded as one of the more sustainable production methods because it can integrate renewable geothermal energy with direct lithium extraction technologies, potentially reducing both carbon emissions and environmental impacts.

While the latest findings are highly encouraging, OGDC emphasised that further technical work will be required before determining whether commercial production is feasible. The company has therefore launched an expanded evaluation programme aimed at establishing the regional extent, continuity and economic viability of the lithium-bearing geothermal resources.

The next phase will include comprehensive brine chemistry profiling, reservoir characterisation and resource confirmation studies in accordance with internationally recognised reporting standards. OGDC said its technical teams are working closely with leading international consultants to evaluate development options and define the most appropriate commercial pathway.

Complementing Pakistan’s mining ambitions

The discovery also aligns with Pakistan’s broader strategy of developing its critical minerals sector. Alongside its oil and gas operations, OGDC has strengthened its presence in mining through its participation in the Reko Diq copper and gold project in Balochistan.

Under the project’s ownership structure, Pakistan holds a 50 per cent stake, with 25 per cent owned collectively by three federal state-owned enterprises—OGDC, Pakistan Petroleum Limited (PPL) and Government Holdings (Private) Limited (GHPL)—and the remaining 25 per cent held by the Government of Balochistan. Canada’s Barrick Mining owns the remaining 50 per cent and serves as the project’s operator.

Widely regarded as one of the world’s largest undeveloped copper and gold deposits, Reko Diq is expected to have a mine life of more than four decades and is projected to generate billions of dollars in exports, attract substantial foreign investment and create thousands of direct and indirect jobs once commercial production begins.

Strategic significance

Although commercial lithium production remains subject to extensive exploration, resource estimation and economic feasibility studies, the confirmation of internationally comparable lithium concentrations represents an important scientific and strategic milestone for Pakistan.

If subsequent studies establish commercially recoverable resources, Pakistan could secure a place in the rapidly expanding global supply chain for critical minerals at a time when governments and manufacturers are actively seeking to diversify battery-material supplies.

For OGDC, the discovery signals the potential evolution of the company from a conventional oil and gas producer into a broader energy and critical minerals enterprise. It also underscores the vast, largely unexplored subsurface potential of Pakistan and could pave the way for new investment in geothermal energy, advanced mineral extraction technologies and the country’s emerging critical minerals sector.