Modes of lithium extraction in Argentina: mining politics in Catamarca, Jujuy, and Salta

Abstract

Lithium is a strategic mineral resource. Because of the high-charge density and long life of lithium carbonate, rechargeable lithium-ion batteries are widely used not only in consumer electronic devices, such as mobile phones and laptops, but also in electric vehicles and for storing electricity from wind and solar energy. Lithium is thus a vital element for making a successful global transition from fossil fuel to renewable energy. Together, Argentina, Chile and Bolivia account for about half the total lithium reserves in the world (US Geological Survey, 2016). Argentina is the only one of these three countries that permits exploitation freely through concessions, and this lack of regulation, coupled with low taxes makes Argentina especially attractive for foreign investors. Argentina’s exports of lithium carbonate were $ 356M in 2018, ranking second only to Chile, with exports of $1B.1 The gap between the two countries is expected to narrow as production increases in Argentina with a wave of new investment in lithium mining (Fornillo, 2015, p.12). The production of lithium carbonate in Argentina dates to 1998, with a boom beginning in 2010 and continuing through the rest of the decade. All current production of lithium is located in three north-western provinces, Catamarca, Jujuy, and Salta, which together form the Argentine leg of the so-called ‘lithium triangle’ that straddles parts of Argentina, Bolivia and Chile. The three provinces produced about 30,000 tons of lithium carbonate in 2016, or approximately 16% of total global production...