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

USD -
AED 3.673104
AFN 64.000368
ALL 81.091764
AMD 369.010403
ANG 1.789884
AOA 918.000367
ARS 1398.000104
AUD 1.3799
AWG 1.8025
AZN 1.70397
BAM 1.662466
BBD 2.013854
BDT 122.689218
BGN 1.668102
BHD 0.377404
BIF 2975
BMD 1
BND 1.267973
BOB 6.9098
BRL 4.914804
BSD 0.999873
BTN 94.420977
BWP 13.425192
BYN 2.825886
BYR 19600
BZD 2.010964
CAD 1.368195
CDF 2315.000362
CHF 0.776504
CLF 0.022628
CLP 890.580396
CNY 6.80075
CNH 6.796155
COP 3749.7
CRC 459.648974
CUC 1
CUP 26.5
CVE 93.718924
CZK 20.630304
DJF 177.720393
DKK 6.34307
DOP 59.467293
DZD 132.257352
EGP 52.72204
ERN 15
ETB 156.137601
EUR 0.848704
FJD 2.183504
FKP 0.734821
GBP 0.733745
GEL 2.680391
GGP 0.734821
GHS 11.264445
GIP 0.734821
GMD 73.000355
GNF 8773.107815
GTQ 7.634866
GYD 209.223551
HKD 7.828495
HNL 26.583478
HRK 6.39504
HTG 130.919848
HUF 300.852504
IDR 17359.5
ILS 2.901304
IMP 0.734821
INR 94.40555
IQD 1309.963492
IRR 1312900.000352
ISK 122.060386
JEP 0.734821
JMD 157.601928
JOD 0.70904
JPY 156.60604
KES 129.150385
KGS 87.420504
KHR 4012.087263
KMF 419.00035
KPW 899.950939
KRW 1462.110383
KWD 0.30769
KYD 0.833358
KZT 462.122307
LAK 21929.626969
LBP 89172.975107
LKR 321.915771
LRD 183.493491
LSL 16.405102
LTL 2.95274
LVL 0.60489
LYD 6.322723
MAD 9.144703
MDL 17.099822
MGA 4176.618078
MKD 52.342393
MMK 2099.606786
MNT 3578.902576
MOP 8.06268
MRU 39.968719
MUR 46.820378
MVR 15.455039
MWK 1733.612706
MXN 17.19605
MYR 3.921039
MZN 63.903729
NAD 16.405102
NGN 1359.450377
NIO 36.794016
NOK 9.20185
NPR 151.087386
NZD 1.67685
OMR 0.384491
PAB 0.999962
PEN 3.457057
PGK 4.415452
PHP 60.502504
PKR 278.66746
PLN 3.593895
PYG 6107.687731
QAR 3.654753
RON 4.430373
RSD 99.623038
RUB 74.203474
RWF 1465.941884
SAR 3.782036
SBD 8.032258
SCR 14.001038
SDG 600.503676
SEK 9.21914
SGD 1.26673
SHP 0.746601
SLE 24.603667
SLL 20969.496166
SOS 571.467429
SRD 37.399038
STD 20697.981008
STN 20.823594
SVC 8.749309
SYP 110.543945
SZL 16.394307
THB 32.207038
TJS 9.329718
TMT 3.51
TND 2.904513
TOP 2.40776
TRY 45.361304
TTD 6.776593
TWD 31.351504
TZS 2598.394038
UAH 43.92104
UGX 3746.547108
UYU 39.879308
UZS 12128.681314
VES 496.20906
VND 26308
VUV 118.026144
WST 2.704092
XAF 557.575577
XAG 0.012388
XAU 0.000212
XCD 2.70255
XCG 1.802048
XDR 0.695511
XOF 557.525817
XPF 101.364158
YER 238.603589
ZAR 16.38082
ZMK 9001.203584
ZMW 19.037864
ZWL 321.999592
  • RBGPF

    0.0000

    63.18

    0%

  • BCC

    -2.0900

    70.67

    -2.96%

  • CMSC

    0.1400

    23.11

    +0.61%

  • RYCEF

    -1.0800

    16.37

    -6.6%

  • JRI

    0.0000

    13.15

    0%

  • NGG

    0.9800

    86.89

    +1.13%

  • RIO

    2.2700

    105.38

    +2.15%

  • BCE

    -0.4300

    24.14

    -1.78%

  • CMSD

    0.1140

    23.534

    +0.48%

  • RELX

    0.0759

    33.58

    +0.23%

  • BTI

    0.2000

    58.28

    +0.34%

  • AZN

    0.3300

    182.85

    +0.18%

  • GSK

    -0.0900

    50.41

    -0.18%

  • VOD

    0.5100

    16.2

    +3.15%

  • BP

    -0.4700

    43.34

    -1.08%

'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