Lithium extraction and industrialization Opportunities and challenges for Latin America and the Caribbean June 2023
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Contents
Lithium is one of the key elements in the energy transition. Until
Introduction........................................................1
now it has been an essential input in the production of lithium-ion batteries —a key technology for the decarbonization of transport and the storage of energy generated from renewable sources. Lithium is also considered a strategic resource by countries that have abundant lithium deposits. In Latin America, Argentina, Chile and the Plurinational State of Bolivia stand out for their deposits, forming the “lithium triangle”, while Brazil, Mexico and Peru, with smaller deposits, also have the potential to produce significant amounts.
The strategic nature of lithium stems from its potential to
contribute to the countries’ economic development. This resource can have a positive impact based on new value creation, in the form of increased output, exports, employment and tax revenues. However, various actors in the aforementioned countries have considered that its greatest potential lies in opportunities to develop productive and technological capacities associated with lithium, thus contributing to the process of structural change in resource-rich economies. From the perspective of governments, this requires policies and regulations that are conducive to the creation of public goods, the development of soft and hard capacities and infrastructures, and the mobilization and steering of the necessary resources.
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I. The global market for lithium batteries is expanding rapidly.....................................2 II. Latin America is a major global player in the lithium sector, with a high degree of specialization in the extraction of the resource and the production of lithium compounds................................13 III. Governance models...................................25 IV. Concluding remarks: guidelines for a productive development agenda around lithium.............................................38 Bibliography.....................................................39 Annex 1.............................................................42 Annex 2.............................................................44
The cut-off date for the information used to prepare this report is 20 April 2023, unless otherwise indicated.
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