Argentina’s lithium exports reached a 10-year high in 2022, increasing by 234% and earning $6bn in revenue. Demand for the metal, which is a crucial component of electric vehicles, batteries, and solar panels, is set to increase six-fold between 2021 and 2040 due to the growing interest in these technologies. Nearly a fifth of all Argentinian mining shipments in 2022 were made up of lithium, and Argentina, along with neighboring countries Chile and Bolivia, are known as the “lithium triangle.” Concerns have been raised about the negative impact of the country’s lithium mining growth on local people and the environment, particularly on water access and supply. Despite these concerns, the continuing demand for lithium offers hope to Argentina’s struggling economy, which has suffered from triple-digit inflation and historic droughts.
Argentina’s Lithium Exports Surge 234% in 2022
Argentina’s lithium exports saw an incredible increase of 234% in 2022, reaching a 10-year high and earning $6bn in revenue. The government revealed this information in a statement on Tuesday, alongside news that mining exports had reached $3.86bn.
The demand for lithium, which is crucial in the production of electric vehicles, batteries, and solar panels, has seen a sharp rise in recent years. The International Lithium Association predicts that demand for the metal will increase six-fold between 2021 and 2040 due to the growing interest in these technologies. According to the World Bank, mineral production linked to clean energy is expected to increase by as much as 500% from 2020 to 2050.
Lithium is often extracted from salt flats using sunlight to evaporate the metal. Nearly a fifth of all Argentinian mining shipments in 2022 were made up of lithium, making it a crucial component of the country’s economy. Argentina, along with neighboring countries Chile and Bolivia, are known as the “lithium triangle,” with the region’s salt flats accounting for 75% of the world’s lithium supply.
India and Iran recently announced the discovery of large lithium deposits, which may pose a challenge to the dominance of the lithium triangle. However, during January and February of 2022, Argentina’s lithium exports more than doubled, with shipments bringing in a record $58m. The continuing demand for lithium offers hope to Argentina’s economy, which has suffered from triple-digit inflation and historic droughts in recent years.
The price of lithium has also been on the rise, increasing 11-fold in the last year, earning it the nickname “white gold.” As the demand for clean energy grows, it is clear that lithium will play a critical role in meeting this demand, and Argentina’s lithium exports are well-positioned to capitalize on this trend.
Concerns Raised Over Environmental Impact of Argentina’s Lithium Mining
Despite Argentina’s impressive lithium mining growth, Indigenous communities and academics have raised concerns over its negative impact on local people and the environment. According to Al Jazeera, the arid landscapes where lithium mining takes place can have negative implications for water access and supply.
The Initiative for Responsible Mining Assurance’s Aimee Boulanger highlighted that while the intention of clean energy demands is to do good, they could actually create greater harm. The New York Times quoted her as saying, “Our new clean-energy demands could be creating greater harm, even though its intention is to do good”.
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