In Washington, they say Argentina is “the most promising case” for the development of the lithium industry and that the country is the main supplier of ore to the United States.

The Center for International Strategic Studies (CSIS), one of the most respected study centers in Washington, the US capital, said in a document that Argentina is the country “The most promising for the expansion of the lithium industry“And that the” lithium triangle “that it forms with Bolivia and Chile is an” opportunity “for the administration of Joseph biden, both in the transition to cleaner energies and in strategic competition with China, a country which has already made progress in the region by even using – the newspaper points out – “vaccine diplomacy”.

The report is titled “South America’s Lithium Triangle: Opportunities for the Biden Administration” and specifies that the region is where the availability of this resource is the highest in the world since the three countries together hold 58% of the world reserves, so the Argentinian-Bolivian-Chilean triangle “will inevitably become the node of the coveted ore”.

“Of the 86 million tonnes of lithium resources in the world, Bolivia has 21 million, followed by Argentina with 19.3 million and Chile with 9.6 million. Mientras Chile ha exitosamente transformado la mayoría de sus recursos available in economically viable reservas para la producción comercial, la Argentina y Bolivia hasta ahora no han podido hacerlo, debido a un clima desfavorable de inversión y condiciones geográficas más deloice un pasiantese, ” , signed by Ryan berg, a “senior” CSIS researcher.

Litio rankings

In addition, the document asserts that Argentina “is the most promising case for the expansion of the lithium industry as it seeks opportunities that facilitate its economic recovery.” The country, he says, has the second largest reserves in the world, behind Bolivia, and the third largest amount of “commercially viable” reserves, behind Chile and Australia. In this regard, she specifies that there are already two commercial operations in progress, in Jujuy and Catamarca: the Salares de Olaroz and the Dead Man. In addition, he adds, since 2019, many constructions have been launched for the extraction of lithium from the salt marshes of the northwest of the country and stresses that “to stimulate investment, President Alberto Fernández has reduced this year taxes (withholdings) on mining exports. . And he optimistically points out that given a “slow improvement” in the investment climate, Argentina’s lithium industry can be expected to “attract more investment in the years to come.”

Argentina is the second country in terms of total reserves and third in “commercially viable reserves” and it is also the main supplier of lithium to the United States: between 2016 and 2019, an official document indicates that 55% of the imported lithium by the United States came from Argentina, followed far behind by Chile (36%) and China (5%)

One of the documents on which the study is based is that of the United States Geological Survey, that is to say a state agency, which not only specifies that the lithium “triangle” holds 58% of the world’s reserves. , that Argentina is the second country in terms of total reserves and third in “commercially viable reserves”, but also points out that it is the main supplier of lithium to the United States. Over the period 2016-2019, the official document specifies, more than half of the lithium used in the United States was imported, and the main suppliers were Argentina, with 55%, Chile, with 36%, and China. (far behind) (5). %), Russia (2%) and “others” (2%).

Premise

The analysis assumes that the importance of lithium as a strategic mineral “will grow exponentially to become an essential component of clean energy systems of the future”, both because of its importance for the development of technologies. clean energy and the large amount of commercially viable reserves in the Lithium Triangle, for which he specifies that “the Biden administration has good reason to collaborate with Argentina, Bolivia and Chile in the fight against climate change“

The CSIS document, seen as a center capable of influencing both the Democratic and Republican governments, points out that much of Biden’s current diplomatic approach to Latin America involves climate change, emphasizing focus on the deforestation of the Brazilian Amazon and the “environmental devastation” in Venezuela. . At the same time, he warns of the geopolitical challenge facing the United States in Latin America, since China has not only approached countries in the region and “increased its influence through its vaccine diplomacy” but has also increased its investments in various sectors, including lithium. Triangle.

In this regard, the document specifies that the Chinese company Ganfeng Lithium is the majority shareholder of the Caucharí-Olaroz operation in Argentina, which will start production in mid-2022 and “should become one of the main production mines of lithium in the world. The CSIS calls the “historically troubled United States relationship with Argentina and Bolivia” a challenge for the Biden administration, which could find “more dynamism through cooperation and partnership on issues such as the lithium ”from a strategic point of view.

To do this, she proposes that the United States – particularly with regard to the work carried out by the President’s Special Envoy for Climate, John Kerry-, “could organize a clean energy forum for major lithium producing countries, which, in addition to the Lithium Triangle countries, would include Australia, China and Canada”.

“Reports indicate that President Alberto Fernández is planning to convene a similar summit. This collaborative effort could increase investment partnerships with Argentina, Bolivia and Chile, as well as find solutions to common challenges of extraction. lithium, ”the report says.

If the Biden administration hopes to meet its goal of reducing carbon emissions by 50% by 2030, the energy storage capacities of the lithium-ion battery will be needed to transform the power grid by capturing the excess. solar and wind power. “Strong public-private partnerships with Argentina, Bolivia and Chile could lead to increased lithium exports from South America to the rest of the world, helping countries globally to reduce their carbon emissions”, Underlines in this regard the document published by the SCRS.

Thus, “thanks to a combination of strategic investments, targeted research and effective diplomacy in partnership with the countries of the Lithium Triangle (Argentina-Bolivia-Chile), Biden could strengthen the imperative to fight against climate change. in its foreign policy agenda, strengthen its position in the competition that is developing with other major powers, and offer more opportunities for clean energy in the region, ”the document concludes.

The importance the Biden government places on climate change was underscored again yesterday in a statement by the US Treasury Department to multilateral lending agencies, such as the World Bank and IDB, to halt funding except in in extreme cases, hydrocarbons. based investment projects. The key is “clean” energy and “electromobility”, for which lithium is a key input. According to the US Geological Survey, 71% of the world’s mineral consumption is for the production of batteries (for electronic devices and electric vehicles, among others) and 14% for ceramics and glass.

KEEP READING: