In 2023, South America significantly boosted its lithium production, with Chile, Argentina, and Brazil leading the charge.
This vital component, essential for electric vehicles, is abundant in the region, making it a key player globally.
The United States Geological Survey (USGS) reports that these three countries contributed over 30% to the world’s lithium supply.
Chile was the frontrunner, with Argentina close behind. Brazil made headlines by nearly doubling its output from the previous year.
Bolivia, despite its vast potential reserves, lagged due to investment and feasibility challenges.
- Australia topped the chart with 86,000 tons.
- Chile produced 44,000 tons, followed by China with 33,000 tons.
- Argentina and Brazil contributed 9,600 and 4,900 tons, respectively.
- Canada and Zimbabwe each added 3,400 tons; Portugal produced 380 tons.
Argentina’s lithium output surged by 46% from 2022, while Brazil’s production saw an 86% increase. Chile’s production grew by 16%, showcasing its established mining operations.
This increased production, especially from Brazil, China, and Zimbabwe, could lower prices and impact the profitability of producers in Chile and Argentina.
China’s production rose by 46%, and Zimbabwe’s output more than tripled. Australia also saw a 15% growth.
The price of lithium carbonate fell by 47% over the past year, marking a 64% decline from its peak in the previous June.
Bloomberg attributes the slow price recovery to a glut in the supply chain. Despite this downturn, major producers, including SQM, are not halting their expansion plans.
Chile aims to double its production, betting on increasing demand over the fear of oversupply.
This strategic focus on lithium production underlines South America’s role in shaping the future of electric mobility, balancing market demands with sustainable extraction practices.