As part of the climate change team at the Konrad Adenauer Foundation, we launched the publication "Unlocking Latin America's Success in the Lithium Industry" last week in La Paz. It has been an honor to prepare this policy paper for KAS, and it was very interesting to discuss its main findings in Bolivia, which I summarize below. The publication can be downloaded in English and Spanish at the following link: https://bit.ly/PaperLitio.
Latin America holds 57% of the world's lithium reserves, with Bolivia, Argentina, and Chile concentrating 39%, 37%, and 19% of these reserves, respectively. Demand for lithium is projected to grow fortyfold by 2040.
The development models applied by these three countries differ significantly. Argentina assigns the responsibility for productive and technological development mainly to the private sector. Bolivia, having declared lithium a national interest resource, employs a centralized approach, granting the state direct control over investments and exclusive management of exploitation to ensure that added value creation remains within the country. Chile combines elements of both systems, promoting partnerships between the state and private companies, having declared lithium a strategic resource. Of these three models, Chile's has been the most successful in leveraging investments to date. However, all three models still face significant challenges in accelerating investments and positioning the region to meet the expected growth in demand for the mineral and as a supplier of intermediate and final products. Long-term investments yield insufficient returns due to uncertainty about scalability and permit approval timelines. Additionally, the significant drop in lithium prices to historically low levels over the past three years disincentivizes current investments. Weak regulatory frameworks and conflicts with local communities further complicate project realization. Moreover, the lack of transparency hinders obtaining and maintaining social licenses to operate.
To address these issues, countries must implement policies for legal certainty, promote water-efficient technologies, and develop local capacities. Ensuring transparency and strengthening environmental regulations are essential for gaining social licenses to operate.
Regional collaboration is key for better positioning the region in the global market. By leveraging the complementary models of Argentina, Bolivia, and Chile, and coordinating with Brazil and Mexico, the region can explore supply chain opportunities in battery manufacturing and electric vehicle assembly. This collaborative approach will help Latin America become a key player in the global lithium market, ensuring sustainable growth and maximizing its mineral wealth.
📣 [Resumen de evento 🇧🇴] 🙋♂️🙋♀️ Gracias a todas y todos los que se sumaron a la presentación de la investigación: “Desbloqueando el éxito de América Latina en la industria del Litio”.
Asimismo, un agradecimiento especial al autor Fernando Anaya (Chile), especialista en energía, transporte y cambio climático, y a los comentaristas especialistas invitados de Argentina, Bolivia y Chile.
En adición a la presentación del paper, también se desarrolló un taller cerrado con expertos en el tema: “Desarrollo sostenible y la industria del litio en América Latina”. En el mismo se discutieron los temas: Gobernanza local del litio y participación ciudadana / Innovación tecnológica, Economía circular y Sostenibilidad en la cadena de valor del litio / Gestión ambiental en la industria del litio.
Pronto publicaremos la memoria resumen del taller para compartir con ustedes las ideas y conclusiones de la presentación y del taller que realizamos.
👉 Pueden encontrar y descargar la publicación aquí: https://bit.ly/PaperLitio
🤜🤛 Aliado en la organización del evento: KAS Bolivia 🙌🇧🇴
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Julia A. Sandner, Giovanni Burga, Silverio Prota.
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#KAS4Climate #KAS4Innovation
Manager of Processing Engineering
1moExcellent work