Lithium and the Andes

How Argentina is part of South America's lithium triangle, how its lithium mining grew with foreign investment, and the environmental and community debates.

Argentina is part of the lithium triangle with Chile and Bolivia, holding a large share of world lithium resources.

Brine extraction

Lithium is extracted from salt flats (salares) by evaporating brine in large ponds.

Growth

Argentina’s lithium production grew rapidly in the 2020s.
Investors include companies from Australia, China, Canada, the US and others.
Argentina’s provinces own resources, making provincial rules important.

Contrast with neighbours

Chile: a long-established producer, moving toward state partnerships.
Bolivia: large resources but slow development under state control.
Argentina: more open to private investment.

Concerns

Water use in arid regions.
Indigenous communities’ rights and consent.
Price swings: lithium prices fell sharply in 2023-24 after a boom.

India’s interest

KABIL, an Indian joint venture, signed an agreement in 2024 to explore lithium blocks in Catamarca province.

The salt flat

In Argentina's high Andes, brine is pumped into evaporation ponds that turn different colours as lithium concentrates, supplying batteries worldwide.

Thinking lithium mining has no local costs

Water use and indigenous rights are serious concerns.

Key takeaways

Argentina is in the lithium triangle with Chile and Bolivia.
Its production grew rapidly with foreign investment.
Water and indigenous concerns arise.
India's KABIL is exploring lithium in Catamarca.