Welcome to the lithium triangle
Chile is by far the largest lithium producer in the region, with an estimated output of 26 thousand metric tons in 2021. Production is concentrated exclusively in the Atacama desert, a region in the north of the country which, along with salt flats in Bolivia and Argentina, form the so-called “lithium triangle” in South America. Despite the overall increase in annual output in recent years, Chile has not managed to keep up with the growth in global demand, losing significant share in worldwide production. This is at least partially related to the government’s historically strict regulations, which gave Chilean mining company SQM and U.S.-based Albemarle exclusive exploration rights in the country. Although other mining corporations have started investing in Chile’s lithium projects, the market's development has faced a lot of resistance from environmentalists.In contrast, Argentina’s reserves – distributed between the provinces of Jujuy, Catamarca, and Salta – have been a focus of foreign investment in recent years. U.S.-American Livent and Australian Orocobre are the largest lithium carbonate producers in the country. With foreign investment pouring in, lithium production in Argentina has more than doubled since the beginning of the decade. Capacity additions adding up to 85 thousand tons have been announced or are under construction, with additional projects at different stages of development.
Meanwhile, lithium production in Bolivia, which is under exclusive governmental exploitation by state-owned Yacimientos de Litio Bolivianos, is still in the pilot stage. Commercial production is expected to start by 2025, at the latest. A new study has recently estimated Bolivia’s lithium resources at 21 million metric tons, more than twice what had been previously evaluated, and potentially making it the largest lithium reserve in the world.
Brazil gains traction in the lithium race
Unlike the salt brines in the lithium triangle, Brazil's lithium is found in the form of pegmatites - mineral ores generally extracted from open pit mines. Despite significantly smaller reserves, the Portuguese-speaking country also ranks amongst the largest lithium producers worldwide. Until recently, Brazilian enterprise CBL, operating in the state of Minas Gerais, was the only lithium-producing company in the country. But as other global mining companies start operations in the territory, Brazil also tries to profit from the higher stages of the metal’s value chain, with investments in lithium batteries production plants attracting billions of dollars.
