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 at a well in Khairpur, Sindh.

According to The News, advanced geochemical analysis of formation water from the Wahid Bakhsh Well revealed a lithium concentration of 275 milligrams per litre, exceeding the internationally recognised commercial evaluation benchmark of 90 milligrams per litre.

Following the discovery, OGDCL has identified eight to ten additional wells in Sindh for geothermal brine exploration to assess the extent of lithium-bearing formations across the region.

The discovery has also attracted interest from the Heavy Mechanical Complex (HMC), which is evaluating the use of locally produced lithium for electric vehicle batteries and defence applications. According to the report, HMC is planning a large-scale electric vehicle manufacturing facility, making domestic lithium resources strategically important.

Officials described the finding as Pakistan's first confirmed occurrence of lithium in geothermal brines, discovered under OGDCL's pilot geothermal programme.

Globally, lithium is a critical mineral, with nearly 80% of demand coming from electric vehicle battery production. It is also widely used in aerospace, defence, consumer electronics, specialty chemicals, glass and ceramics.

OGDCL said the lithium concentration at the Wahid Bakhsh Well is comparable to several high-grade geothermal brine projects currently under commercial development in Europe and North America.

The company has initiated a comprehensive evaluation programme that includes brine chemistry studies, reservoir mapping, resource confirmation and economic feasibility assessments in collaboration with international consultants.

Officials cautioned that significant technical and commercial evaluation remains before any production decision can be made. If commercially recoverable reserves are confirmed, the discovery could strengthen Pakistan's position in the global critical minerals supply chain, attract foreign investment and support the development of a domestic battery and electric vehicle industry.