D. KHASHBAT: NEW LITHIUM MINERALIZATION POINTS IN CENTRAL AND WESTERN REGIONS IDENTIFIED

Lithium has emerged as an important mineral in Mongolia’s mining sector, because of increasing global demand. Responding to market trends, both domestic and foreign investors are increasingly focusing on lithium exploration in Mongolia, leading to the discovery of new deposits. To gain insights into this development, I interviewed D. Khashbat, a teacher at the School of Geology and Mining of the Mongolian University of Science and Technology (MUST) and Senior Advisor at Critical Minerals Mongolia LLC.

What are the characteristics and significance of lithium?

Lithium is the lightest metal on Earth, known for its high chemical reactivity, facilitating rapid charge and discharge. With a single electron in its outer shell, it readily loses and gains electrons. This electrochemical behavior makes lithium ideal for energy storage applications in batteries.

In comparison to Mongolia's main minerals such as copper, coal, iron ore, and feldspar, lithium has been relatively under-studied. Mongolia has around 15-16 occurrences of lithium, with 5 deposits identified thus far.

There has been a significant shift in global lithium consumption trends. Historically, lithium was primarily utilized in oil refining, fuel processing, and the porcelain industry. However, over the past two decades, its use in rechargeable battery production has increased tenfold. This dramatic shift in consumption patterns has led to growing global demand for lithium.

Batteries have become an integral part of human progress, powering everything from small watches to multi-gigawatt power banks, electric cars, computers, and cell phones. This surge in battery usage has spurred intensified global research into lithium over the past decade. In the 2020s, demand for lithium surged even further with the ramp-up in electric car production.

In Mongolia, lithium research has been intensifying since 2020, following the Covid-19 pandemic.

Which companies are most interested in lithium exploration and research?

Due to high demand and low supply, the price of lithium has surged in the market. According to market laws, raw materials experiencing increasing demand attract attention from global businesses. 

Since 2020, foreign investors interested in lithium have been increasingly focusing their efforts on Mongolia. Currently, investors from Canada, Hong Kong, and the UAE exhibit considerable enthusiasm for lithium.

In this context, geologists are also showing a growing interest in lithium. When I began my lithium research in 2016, there were few people in Mongolia who shared this interest. Nowadays, it's rare to find someone who isn't talking about this mineral.

What characteristics value of this mineral?

As rechargeable battery technology continues to advance globally, lithium batteries remain at the forefront. In 2019, the Nobel Prize in Chemistry was awarded to three scientistsJohn B. Goodenough, M. Stanley Whittingham, and Akira Yoshino-who discovered, developed, and implemented lithium ion battery technology. The recognition of lithium batteries with a Nobel Prize underscores their profound significance to humanity.

With much discussion on energy transition and green development, the production of renewable energy is on the rise. Lithium is playing a significant role in facilitating this energy transition.

Where are lithium deposits discovered in Mongolia?

Mongolia possesses lithium reserves, albeit not on the scale of Oyu Tolgoi Currently, there are five lithium deposits that have been explored, with reserves determined and discussed by the Minerals Professional Council and registered in the Sovereign Wealth Fund. These deposits have been found in Sukhbaatar, Dundgobi, and Tuv aimags.

In addition, several new lithium mineralization sites have been identified in the central and western regions. As these projects progress and further exploration is conducted, Mongolia's lithium reserves are expected to increase in the future.

In what form is lithium found in nature? 

There are three types of lithium found in nature. Firstly, silicate ore or hard rock, with most lithium minerals being silicate minerals. Secondly, lithium salts. Thirdly, clays containing lithium. In summary lithium-containingminerals exist in the forms of salts, rocks, and clays.

Which type of lithium is prevalent in Mongolia?

I research lithium mineralization associated with hard rock or pegmatite. The prospects for silicate-type lithium mineralization in Mongolia are considered promising. In contrast, salt or brine lithium deposits are more common in hot and dry regions with significant evaporation. Argentina, Chile, and Bolivia, known as the "golden triangle" of lithium in South America, primarily extract lithium from salt deposits. The lakes in the expansive Atacama Desert are particularly rich in lithium, which is extracted from them.

There are known reserves of lithium salt in Mongolia, with a Canadian-invested company currently conducting research in this area. Lithium-bearing clay deposits have not yet been discovered but are considered possible in Mongolia.

Is lithium mining feasible in our country?

For Mongolia, now is the opportune time to discuss lithium mining and processing. We need to be prepared. The technology for manufacturing lithium batteries is evolving, and various types of advanced charge collectors are being developed at the laboratory level. However, it may take 20-30 years before these batteries are manufactured and widely integrated into watches, mobile phones, and laptops.

Our lithium projects are currently at the exploration stage. If a large-scale deposit discovered, constructing a processing plant based on that deposit or in proximity to several nearby deposits would become feasible. Given the demand in the global market, it is essential to adopt a long-term perspective in our approach to lithium extraction.

What steps is the government taking to integrate lithium into the economic cycle? Is this issue being addressed solely within sectoralministries and professional associations?

Discussions on the concept of critical minerals have been going on since 2010, driven by concerns about the availability and supply of raw materials China serves as the primary supplier of raw materials used in high technology, with Western countries possessing advanced technology being the main buyers. As technology develops, demand Increases, and the risk of supply shortages grows. Consequently. producing countries have identified minerals at risk of supply shortages as critical minerals due to their economic importance. Countries have compiled lists of these crucial minerals and are assigning them high prionity

Has Mongolia finalized its list of critical minerals? What is the significance of compiling such a list?

The Mongolian University of Science and Technology for example conducts research projects in this field. Compiling a list of critical iminerals is a prudent decision. The Mongolian Critical Minerals Association is actively engaged in this effort, encompassing multiple sectors beyond just minerals. For a country like Mongolia, situated and between two major powers implementing multi-pillar foreign policy, including a third neighbor policy, it is wise to clarify its stance on critical minerals.

If we can attract the interest of Western countries in this area, we will be able to benefit not only in the mineral sector but also in other aspects of foreign relations. First, we must decide which minerals to include in the list of critical minerals.

In recent years, critical minerals have been a topic of discussion at every conference on geology and mining. We cannot ignore the fact that entire large-scale conferences are organized specifically to address the issue of critical minerals.

Which minerals are included in the global list of critical minerals?

Every country is unique, but there is a general trend. In 2023, a small study compared the lists of critical minerals issued by the European Union, United States, Canada, Japan, and Australia. According to this research, minerals and rare earth elements essential for high-tech applications are included in these lists.

The list includes lithium, nickel, cobalt, and graphite, which are raw materials for batteries. Additionally, in 2022, the European Union added coal to the list of critical minerals. This decision was influenced by the situation where Russia, due to economic sanctions following the Ukraine conflict, could no longer supply natural gas to Europe. As a result, coal supply from Ukraine became suddenly at risk, leading to increased demand for coal In Europe and its inclusion in the critical minerals list.

Since the European Union initially published its list of critical minerals in 2010, it has now updated this list for the sixth time. Similarly, other countries like Canada first approved their list of critical minerals in 2022 and updated it in 2024.

Our country has begun to engage actively in this field. For instance, we have signed an agreement with South Korea to establish a research center focusing on rare earth elements. Discussions are ongoing for cooperation with France inuranium mining and critical minerals. Additionally collaborations are underway with Japan and Canada. Talking about lithium inevitable moves us to the topic of critical minerals. Lithium holds a prominent position among critical minerals on the global scale.

Why did you decide to study lithium?

I am a geologist. I worked in an exploration company in that capacity before becoming a teacher at MUST in 2015. During my tenure, I had the opportunity to meet Mr. Chuluu, an Inner Mongolian professor of Chemistry at Peking University Mr. Chuluu is a distinguished scientist who earned his doctorate in Japan and worked at NEC Corporation, where he holds numerous patents related to battery manufacturing. Electric buses were first used during the 2008 Beijing Olympics and the batteries used in these buses were manufactured under patents owned by Mr. Chuluu.

When Professor Chuluu was working in Japan, Peking University invited him and provided him with all favorable conditions. For the first time in its history, Peking University changed its rules to allow a university teacher to own a company. With this new rule, Professor Chuluu became the first university teacher in China to establish his own startup company.

Meeting Professor Chuluu, who won China's top scientist award, gave me a profound understanding of lithium batteries. It inspired me to begin working in this field. At that time, apart from one research project on lithium conducted during the socialist period, there was virtually nothing related to this industry in Mongolia. This sparked my interest, and I ventured into this emerging field.

What are the lithium reserves of our two neighbors?

Russia possesses vast lithium deposits, with some located adjacent to the border with Mongolia and others just six kilometers away. The Russian Federation conducted extensive geological research in this area. Referring to the 1908 map of the Bogd Khanate of Mongolia, there is a cluster of lithium deposits known as Tastig in the region between Zavkhan and Khuvsgul aimags. Mongolia is encircled by lithium deposits situated to the south of Lake Baikal.

Geological research in China has achieved a high level of development and is advancing rapidly. The Altai Region of China's Xinjiang Uyghur Autonomous Region borders Mongolia's Khovd and Bayan-Ulgii aimags. In the Altai city of the Altai region, there is a cluster of lithium deposits known as Khukhtogoo in Mongolian. This area is regarded as China's primary lithium region. 

The Altai region was once part of Mongolia during the Bogd Khanate of Mongolia. Therefore, a century ago, Mongolia possessed significant lithium deposits. I believe that by intensifying geological exploration efforts, we can discover large lithium deposits in Mongolia once again.

What level can our country achieve in the global lithium industry?

The critical minerals sector, including lithium, is relatively small and still developiny compared to global minerals like gold and copper.. We are currently at a crucial juncture to define our role in this market. With the right policies and strategies, we have the opportunity to succeed.

The economic benefits derived from lithium will vary depending on whether it is mined and exported as concentrate, processed for added value, or used in battery production.

If lithium is used in the production of batteries, the economic impact will undoubtedly be significant.

In my view, building a small battery factory in Mongolia would be more efficient than exporting lithium as a concentrate.

If herder families replace their lead accumulators with lithium batteries for recharging mobile phones and smart devices, it will undoubtedly have a significant economic impact. Lithium batteries can store more energy and maintain their charge for longer periods. The decomposition of lead is highly detrimental to human health. Therefore, I believe that there is a promising future if Mongolia can develop rechargeable batteries to replace traditional accumulators. This industry is still in its early stages in our country, and currently, there are few specialists in Mongolia working in this field.

In conclusion, I extend my best wishes for continued success to the team of your magazine, which has consistently delivered high-quality news and information about the mineral resources industry since its inception.