According to the Argentine Foreign Ministry, Argentina, Bolivia, and Chile are working to fix the lithium price.
According to the report, a document is being drafted to promote an OPEC of the Lithium Triangle to reach a price agreement given the fluctuating value of the mineral, of which all three have large reserves and production potential.
The price of the mineral is “arbitrary” as its value, which had already risen to US$9,720 per ton by the end of May 2021 and currently stands at around US$73,000, fluctuates frequently, creating volatility and uncertainty.
The three countries’ foreign ministers are working on an agreement reminiscent of the Organization of Petroleum Exporting Countries (OPEC).
OPEC is an association of oil cartels that set production levels to influence the price of a barrel of crude oil.
In this sense, the ministers also want to agree on prices, coordinate production flows, and establish sustainable industrial, scientific, and technological development guidelines.
If Argentina, Chile, and Bolivia agree, the foreign ministers believe that Australia – the world’s leading producer – could also agree with the idea of price convergence.
The foreign ministers of the three countries have been negotiating since July on a joint declaration to present to their respective presidents, which could be accelerated next week during the two meetings of the foreign ministers of the Community of Latin American and Caribbean States (CELAC) in Buenos Aires.
Argentina, Bolivia, and Chile make up the so-called lithium triangle, which, according to Argentina’s Ministry of Mines, accounts for about 65 percent of the world’s lithium resources and will account for about 29.5 percent of total world production by 2020.
Exploiting the mineral in salt flats and brines, such as those found in Argentina, Chile, and Bolivia, will be necessary for the medium term to meet the explosive demand for lithium batteries as part of the transition to electric mobility.
LITHIUM TRIANGLE
The Lithium Triangle is a region of the Andes rich in lithium reserves around the borders of Argentina, Bolivia, and Chile.
The lithium in the triangle is concentrated in various salt pans that exist along the Atacama Desert and neighboring arid areas, the largest ones including Salar de Uyuni in Bolivia, Salar de Atacama in Chile, and Salar del Hombre Muerto in Argentina.