Lithium, Latin America’s "White Gold": how is the business evolving in Bolivia, Chile, and Argentina?  

Marina Vanni

Demand for lithium has experienced exponential growth due to its use in the manufacturing of batteries for electric vehicles and renewable energy storage systems. Latin America is home to approximately 66% of the world’s lithium reserves, generating great interest in the region from foreign companies and governments.
According to the latest U.S. Geological Service report, Bolivia, Argentina, and Chile account for 56.3% of this mineral resource worldwide.

Business is growing in the region

According to Bloomberg, the Chinese company Zijin Mining Group Ltd. is participating in advanced stages of dialogue with the government of Argentina to build a battery manufacturing plant in the province of Catamarca. The company had already announced investments of US$ 380 million in February for the construction of a lithium carbonate plant by Liex S.A., a subsidiary in the South American country.
In Chile, Karla Flores, director of the Foreign Investment Promotion Agency (InvestChile), told EFE in April that they had led conversations for developing the lithium industry with 46 companies from 12 countries, including Germany, Argentina, Australia, Canada, China, South Korea, the United States, France, and Japan.
In Bolivia, President Luis Arce confirmed agreements with Russia’s Uranium One Group and China’s Citic Guoan last month to set up two lithium carbonate industrial complexes with an investment of US$ 1.4 billion.

Three countries, three approaches

Chile considered the world’s largest lithium producer, is known for its business model based on the private exploitation of this resource. SQM (Sociedad Química y Minera) and Albemarle Corporation, both based in the United States, are the main players in the country’s lithium industry. These companies have obtained concessions to operate in the Salar de Atacama.

Bolivia, on the other hand, has opted for the nationalization of lithium. Yacimientos de Litio Bolivianos (YLB) has been appointed to manage the resources. While the country has shown an interest in attracting foreign investment for the development of the industry, the government has maintained strict control over foreign presence.

On the other hand, Argentina has followed a mixed approach, allowing international companies to participate in the business. The lithium industry has experienced significant growth in recent years, attracting foreign investment from major players. Livent Corporation (formerly FMC Corporation), Ganfeng Lithium, SQM, and Lithium Americas have established operations in the country.