Bangkok, Thailand – In a significant development, two abundant lithium deposits were discovered in the province of Phang Nga, Thailand, as announced by the Deputy Spokesperson of the Prime Minister’s Office on Thursday, local time. These findings hold the potential to be utilized in the production of power batteries for electric vehicles.
Citing data from Thailand’s Ministry of Industry and Mining, the spokesperson revealed that the lithium reserves found in Phang Nga exceed a staggering 14.8 million tons, with the majority concentrated in the southern region of the province. This discovery positions Thailand as the world’s third-largest holder of lithium reserves, trailing only Bolivia and Argentina.
According to the data provided by the Department of Industry and Mining in Thailand, one of the exploration sites in Phang Nga, named “Ruangkiat,” already boasts lithium reserves of 14.8 million tons, with an average lithium oxide grade of 0.45%. Another site, named “Bang E-thum,” is currently undergoing estimation for its lithium reserves.
In comparison, a report from the United States Geological Survey (USGS) in January 2023 indicated global proven lithium reserves to be approximately 98 million tons. Among the leading lithium-producing nations, Bolivia reported reserves of 21 million tons, Argentina 20 million tons, Chile 11 million tons, and Australia 7.9 million tons.
Geological experts in Thailand confirmed that the lithium content in the two deposits in Phang Nga surpasses that of many major deposits worldwide. Alongkot Fanka, a geologist from Chulalongkorn University, stated that the average lithium content in the southern lithium deposits is approximately 0.4%, making them two of the richest reserves globally.
It is worth noting that the lithium deposits in Phang Nga are primarily of pegmatite and granite types. Fanka explained that granite is common in southern Thailand, and the lithium deposits are associated with the region’s tin mines. Thailand’s mineral resources mainly include tin, potash, lignite, and oil shale.
Earlier, officials from the Ministry of Industry and Mining in Thailand, including Aditad Vasinonta, mentioned that exploration permits for lithium had been granted to three locations in Phang Nga. Vasinonta added that once the Ruangkiat mine obtains an extraction permit, it could potentially power one million electric vehicles equipped with 50 kWh battery packs.
For Thailand, possessing viable lithium deposits is crucial as the country rapidly establishes itself as a hub for electric vehicle production, aiming to build a comprehensive supply chain to enhance its appeal to automotive investors. The government is actively supporting the growth of the electric vehicle industry, providing a subsidy of 150,000 Thai Baht (approximately 30,600 Chinese Yuan) per electric vehicle in 2023. Consequently, the electric vehicle market in the country experienced explosive growth, with a year-on-year increase of 684%. However, with the subsidy reduced to 100,000 Thai Baht (approximately 20,400 Chinese Yuan) in 2024, the trend may see a slight decline.
In 2023, Chinese brands dominated the pure electric vehicle market in Thailand, with a market share ranging from 70% to 80%. The top four electric vehicle sales for the year were all Chinese brands, securing eight out of the top ten positions. It is anticipated that more Chinese electric vehicle brands will enter the Thai market in 2024.