Bloomberg (March 2023) notes the interest from Canadian, Asian, and European companies in the so-called “Lithium Triangle,” formed by Argentina, Bolivia, and Chile. This region holds a significant portion of the world’s lithium reserves, essential for the production of batteries powering the electric vehicle revolution and other technological devices.
Despite the immense potential, investors must consider factors such as political instability, environmental demands, and indigenous community rights. However, projects integrating ESG criteria and forming alliances with local governments have managed to secure licenses and international financing, setting a precedent for future initiatives.
The competition among South American countries to attract foreign capital has driven reforms to facilitate investment, although the lack of infrastructure and bureaucratic complexity remain significant challenges. Still, global lithium demand and the diversification of supply outside of China make South America a priority destination for mining exploration.
Source:
• Bloomberg, “South America’s Lithium Rush Draws Billions in Exploration Funds,” March 2023.
