A new study said Germany could have enough lithium to meet its long-term domestic needs. Sourcing domestic commodities would help its weakened automotive industry reduce reliance on imports – a welcome development in a deglobalized environment.

The study by the Federal Institute for Geosciences and Natural Resources and the Fraunhofer IEG Institute notes the potential of lithium extraction from deep underground waters.

Germany's reliance on lithium imports is notable. In 2023, the country imported €23.7 billion ($25.72 billion) worth of batteries, of which lithium-ion batteries accounted for 86%, according to the trade group ZVEI. Meanwhile, the German Raw Materials Agency estimates that, by 2030, the domestic demand will reach 170,000 metric tons of lithium annually.

According to Reuters, the study estimates that Germany holds up to 26.51 million metric tons of lithium, particularly in the North German Basin and the Central Thuringian Basin.

Much of this lithium could be extracted as a byproduct of geothermal energy production, offering a dual benefit of sustainable energy and critical mineral supply. Major corporations, including ExxonMobil (NYSE:XOM), have shown interest, with Exxon's subsidiary Esso Deutschland securing four exploration licenses in Lower Saxony.

Katharina Alms, the research leader at Fraunhofer IEG, told Reuters the development shows that surprisingly high lithium resources might be dormant underground.

Still, she acknowledged that variations in concentration levels and technical difficulties associated with extraction with low-permeability rock formations pose difficulties.

However, lithium dissolved in brine allows for direct lithium extraction (DLE). This method is more environmentally friendly than traditional evaporation ponds in places like Chile and Argentina, which require vast water and land.

Read Next:

• Toronto Risks Its Mining Hub Status As Bureaucracy And Geopolitics Take Toll

Photo via Shutterstock