Lithium’s pivotal role in the electric vehicle market presents a golden opportunity for Latin American countries.
Specifically, Chile and Argentina are seizing this opportunity. On the other hand, Bolivia remains a question mark, while Brazil’s contributions are minor for now.
According to Benchmark Mineral Intelligence, Chile led with 34% of the world’s lithium output in 2022. Argentina followed with a 5% share.
Australia took the top spot, contributing 43%. China came in after the two South American nations, with 14%.
Chile holds 41% of the globe’s known lithium reserves. Australia has 25.4%, Argentina owns 9.8%, and China has 6.7%.
Contrary to popular belief, Bolivia has more lithium resources, not reserves.
Chile’s Copper Commission forecasts big growth. They expect lithium production to rise from 162,000 tons in 2021 to 336,000 tons by 2035.
Lithium exports hit $8.14 billion in 2022. This amount is an eightfold increase from 2021, accounting for 8.3% of Chile’s total exports.
In Argentina, lithium exports reached nearly $695 million in 2022. With new projects in the pipeline, exports could surpass $7 billion by 2025.
Three Argentine lithium projects are currently in production, with more on the way. These projects don’t just boost exports; they also create jobs and draw foreign investment.
Both countries stand to gain much from the growing global need for lithium.
This rising demand can help diversify their economies and make them more competitive globally.
Background Lithium South America
The geographic location of Chile and Argentina gives them an edge in lithium production.
They both have vast reserves, strategically positioning them in the global market.
This is crucial as the world transitions to cleaner energy sources. Consequently, the lithium boom can redefine their economic landscapes in the coming years.
The rising demand for electric vehicles is a significant factor. As the market grows, so does the need for lithium.
Therefore, both nations have a golden opportunity to carve a niche for themselves in this sector.
Investing wisely now can set them on a path for long-term economic success, far beyond their current major exports.