Latin America, home to the world’s largest lithium reserves in the Lithium Triangle, must invest in technology and innovation to preserve its market share in the global race to exploit this crucial metal for electric mobility, according to the Economic Commission for Latin America and the Caribbean (ECLAC).
ECLAC predicts that Latin America’s share of lithium consumption will decline from 37% in 2021 to 32% in 2030 due to the entry of new producing countries such as the United States, Canada, and Zimbabwe, as well as increased extraction volumes.
While Latin America shows promise with new lithium mining projects, the region must develop a strategic plan to maintain or expand its market share.
This requires investments, technological advancements, and improvements in governance, stated José Manuel Salazar-Xirinachs, the head of ECLAC.
Chile, Bolivia, and Argentina, known as the lithium triangle, account for 56% of the global lithium production, which increases to 60% when considering other Latin American countries like Mexico, Peru, and Brazil.
The demand for lithium has surged in recent years, leading to a significant price increase in 2022.
ECLAC emphasized that countries with lithium reserves have a unique opportunity that could last for decades, but it requires implementing a political agenda for productive development.
The exponential growth in demand for lithium presents an opportunity for increased extraction, refining, exports, job creation, tax revenues, and the development of a robust industry with strong economic linkages.
Australia, Chile, China, and Argentina dominate global lithium production, supplying 96% of the world’s lithium consumption in 2021.