The China Mail - 'We don't eat lithium': S. America longs for benefits of metal boon

USD -
AED 3.67295
AFN 66.503991
ALL 80.603989
AMD 366.170403
AOA 917.000367
ARS 1491.937904
AUD 1.414627
AWG 1.80125
AZN 1.70397
BAM 1.696506
BBD 2.013896
BDT 123.776354
BHD 0.377104
BIF 2987.5
BMD 1
BND 1.281271
BOB 11.884005
BRL 5.083304
BSD 0.999879
BTN 95.145572
BWP 13.496235
BYN 2.977343
BYR 19600
BZD 2.010921
CAD 1.39555
CDF 2262.50392
CHF 0.80802
CLF 0.023137
CLP 913.560396
CNY 6.747604
CNH 6.743285
COP 3157.16
CRC 454.53954
CUC 1
CUP 26.5
CVE 95.703894
CZK 20.982104
DJF 177.720393
DKK 6.46804
DOP 58.250393
DZD 132.93304
EGP 49.555853
ERN 15
ETB 160.000358
EUR 0.86495
FJD 2.20855
FKP 0.740916
GBP 0.741235
GEL 2.610391
GGP 0.740916
GHS 11.76039
GIP 0.740916
GMD 73.503851
GNF 8775.000355
GTQ 7.628986
GYD 209.187745
HKD 7.84315
HNL 26.880388
HRK 6.518804
HTG 130.738004
HUF 314.060388
IDR 17801
ILS 2.99985
IMP 0.740916
INR 95.13785
IQD 1310.5
IRR 1375550.000352
ISK 123.340386
JEP 0.740916
JMD 158.790465
JOD 0.70904
JPY 157.80604
KES 128.780385
KGS 87.450384
KHR 4052.503796
KMF 426.00035
KRW 1407.890383
KWD 0.30866
KYD 0.833247
KZT 468.616634
LAK 22582.503779
LBP 89550.000349
LKR 335.380452
LRD 181.550382
LSL 16.130381
LTL 2.95274
LVL 0.60489
LYD 6.365039
MAD 9.305039
MDL 17.387495
MGA 4310.000347
MKD 53.374161
MMK 2099.750695
MNT 3597.347644
MOP 8.079926
MRU 40.090379
MUR 47.050378
MVR 15.450378
MWK 1737.000345
MXN 17.136204
MYR 4.090104
MZN 63.905039
NAD 16.250377
NGN 1364.860377
NIO 36.795607
NOK 9.51237
NPR 152.232915
NZD 1.696641
OMR 0.382792
PAB 0.999866
PEN 3.385039
PGK 4.42225
PHP 60.705038
PKR 277.803701
PLN 3.719205
PYG 5945.498155
QAR 3.644504
RON 4.536304
RSD 102.024038
RUB 81.892834
RWF 1465
SAR 3.780227
SBD 8.065696
SCR 14.475038
SDG 600.503676
SEK 9.480804
SGD 1.278204
SLE 24.603667
SOS 600.503662
SRD 37.866504
STD 20697.981008
STN 21.375
SVC 8.749095
SZL 16.245038
THB 33.050369
TJS 9.223917
TMT 3.51
TND 2.912038
TRY 47.697504
TTD 6.777323
TWD 32.250604
TZS 2647.503038
UAH 44.783463
UGX 3724.827703
UYU 40.249652
UZS 11950.000334
VES 755.762404
VND 26204.5
VUV 119.414824
WST 2.733661
XAF 568.992228
XAG 0.015756
XAU 0.00023
XCD 2.70255
XCG 1.802071
XDR 0.708194
XOF 568.000332
XPF 103.350363
YER 238.403589
ZAR 16.14632
ZMK 9001.203584
ZMW 18.872278
ZWL 321.999592
  • CMSC

    0.0240

    21.744

    +0.11%

  • RBGPF

    0.7600

    70.5

    +1.08%

  • RIO

    1.4500

    101.1

    +1.43%

  • RYCEF

    0.2300

    20.85

    +1.1%

  • CMSD

    -0.1600

    21.82

    -0.73%

  • BCC

    2.3400

    86.6

    +2.7%

  • GSK

    0.7900

    52.96

    +1.49%

  • BCE

    -0.0200

    22.75

    -0.09%

  • NGG

    0.4700

    80.88

    +0.58%

  • AZN

    1.4100

    161.42

    +0.87%

  • VOD

    0.1900

    16.19

    +1.17%

  • RELX

    0.0485

    35.52

    +0.14%

  • BTI

    0.6000

    59.33

    +1.01%

  • JRI

    0.1500

    12.81

    +1.17%

  • BP

    -0.6000

    41.63

    -1.44%

'We don't eat lithium': S. America longs for benefits of metal boon
'We don't eat lithium': S. America longs for benefits of metal boon / Photo: © AFP

'We don't eat lithium': S. America longs for benefits of metal boon

The turquoise glimmer of open-air pools contrasts sharply with the dazzling white of salt flats in Latin America's "lithium triangle," where hope resides for a better life fueled by a metal bonanza.

Text size:

A key component of batteries used in electric cars, demand has exploded for lithium -- the "white gold" found in Chile, Argentina and Bolivia in quantities larger than anywhere else in the world.

And as the world seeks to move away from fossil fuels, lithium production -- and prices -- have skyrocketed, as have the expectations of communities near lithium plants, many of whom live in poverty.

But there are growing concerns about the impact on groundwater sources in regions already prone to extended droughts, with recent evidence of tree and flamingo die-offs.

And there are scant signs to date of benefits trickling down.

"We don't eat lithium, nor batteries. We do drink water," said Veronica Chavez, 48, president of the Santuario de Tres Pozos Indigenous community near the town of Salinas Grandes in Argentina's lithium heartland.

A poster that meets visitors to Salinas Grandes reads: "No to lithium, yes to water and life."

Lithium extraction requires millions of liters of water per plant per day.

Unlike in Australia -- the world's top lithium producer that extracts the metal from rock -- in South America it is derived from salars, or salt flats, where saltwater containing the metal is brought from underground briny lakes to the surface to evaporate.

- Soaring prices -

About 56 percent of the world's 89 million tons of identified lithium resources are found in the South American triangle, according to the US Geological Survey (USGS).

The world average price rose from $5,700 per ton in November 2020 to $60,500 in September this year.

Chile hosts the westernmost corner of the lithium triangle in its Atacama desert, which contributed 26 percent of global production in 2021, according to the USGS.

The country started lithium extraction in 1984 and has been a leader in the field partly because of low rainfall levels and high solar radiation that speeds up the evaporation process.

But Chilean law has made it difficult for companies to gain concessions from the government since the dictatorship of Augusto Pinochet declared the metal a "strategic resource" for its potential use in nuclear bombs.

Only two companies have permits to exploit the metal -- Chile's SQM and American Albemarle, which pay up to 40 percent of their sales in tax.

In the first quarter of this year, lithium's contribution to the public coffers surpassed those of Chile's mainstay metal, copper, for the first time, according to government records.

Yet, the environmental costs are starting to stack up, and locals fear there is worse to come.

This year, a study in the journal Proceedings of the Royal Society B found a link between lithium mining and a decline in two flamingo species in the Salar de Atacama.

"The development of technologies to slow climate change has been identified as a global imperative. Nonetheless, such 'green' technologies can potentially have negative impacts on biodiversity," said the study.

In 2013, an inspection at the SQM site -- which reported using nearly 400,000 liters of water per hour in 2022 -- found that a third of carob trees in the area had died.

A later study pointed to water scarcity as a possible cause.

"We want to know, for sure, what has been the real impact of the extraction of groundwater," said Claudia Perez, 49, a resident of the nearby San Pedro river valley.

She was not against lithium, said Perez, provided there are measures to "minimize the negative impact on people."

- 'Leave us alone' -

Across the Andes in Argentina, the salt lakes of Jujuy host the world's second-largest lithium resources along with the neighboring provinces of Salta and Catamarca.

With few restrictions on extraction and a low tax of only 3.0 percent, Argentina has become the world's fourth-biggest lithium producer from two mines.

With dozens of new projects in the works with the involvement of US, Chinese, French, South Korean and local companies, Argentina has said it hopes to exceed Chilean production by 2030.

But not everyone is sold on the idea.

"It is not, as they say, that they (lithium companies) are going to save the planet... Rather it is us who have to give our lives to save the planet," said Chavez, of Santuario de Tres Pozos in Jujuy province.

A neighbor, 47-year-old street food seller Barbara Quipildor added fiercely: "I want them to leave us alone, in peace. I don't want lithium... My concern is the future of my children's children."

- Will locals benefit? -

About 300 kilometers (190 miles) north of Jujuy, the salar of Uyuni in Bolivia holds more lithium than anywhere else -- a quarter of global resources, according to the USGS.

Half of the residents in the region -- which is also rich in silver and tin -- live in poverty, household surveys show.

The country's former leftist president Evo Morales nationalized hydrocarbons and other resources such as lithium towards the start of his 2006-2019 mandate and vowed Bolivia would set the metal's global price.

In Rio Grande, a small town near the Yacimientos de Litio Bolivianos (YLB) lithium plant, Morales' plans were met with excitement.

In 2014 Donny Ali, a lawyer now aged 34, opened a hotel with the expectation of an economic boom.

He called it Lithium.

"We were expecting major industrial technological development and more than anything, better living conditions," he told AFP. "It didn't happen."

Hoping to boost the struggling lithium sector, the government opened it up to private hands in 2018, though domestic legislation has not yet denationalized the resource, and no private extraction has yet begun.

"Some think that Bolivia will 'miss the boat' of lithium," said economist Juan Carlos Zuleta. "I don’t think that’s going to happen."

The real question, he said, is: when the boat comes, "will lithium extraction benefit Bolivians?"

The three countries are now looking towards battery manufacturing -- possibly even building electric cars -- as a way to turn the natural lithium bounty into a modern-day industrial revolution.

"There is a concrete possibility for Latin America to become the next China," said Zuleta.

In the meantime, the Hotel Lithium stands empty.

G.Fung--ThChM