Who Really Pulls the Strings in Argentinaâs Lithium Wealth?
My country could play a key role in the worldâs electric future, but at what cost?
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Lithium powers our pockets and desks, in phones and laptops. And it is an essential raw material for the renewable energy transition away from carbon-emitting fossil fuels and toward a rechargeable-driven world of electric vehicles. Demand for it has exploded, with global lithium production tripling and consumption increasing by 8.9% annually between 2010 and 2020. The battery of a Tesla Model S, for example, uses around 12 kg of lithium.
South Americaâs so-called âLithium Triangle,â formed by parts of Argentina, Chile, and Bolivia, holds more than 75% of the worldâs supply. My home country, Argentina, is a lithium horsepower by itself, being the worldâs fourth-largest producer and possessing over 20% of the worldâs reserves worth billions of dollars.
The lithium stockpiles are spread across millions of hectares of ancestral salt flats known as âsalaresâ, supporting unique ecosystems and local communities. These lunar landscapes are lifelines for local populations and wildlife and influence climates and water cycles.
Unsurprisingly, multinationals have swooped in behind promises of billionaire investments and are attracted by the relatively cheap and effective extraction processes the area offers. But the costs are high for the environment and for locals who struggle to afford basic necessities and access water while foreign companies profit off of their depleated natural resources.
My country, as things stand today, showcases the Lithium Paradox at its finest:
a so-called path to sustainability thatâs wrecking ecosystems
economic development promises that are hollow as profits escape to foreign banks
and a global climate crisis where Big Oilâs stubborn insistence on fossil fuels hinders any real progress toward a cleaner electric alternative
Let me show you.
Mega Mining = Mega Drinkers
Recent research by the Pathways to Net Zero Project in Argentina has brought eye-popping results: five lithium mining companies control nearly one million hectares of salt flats in the northwestern region of the country â an area equivalent to the size of Lebanon.
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As a result, they are not just affecting the economic landscape of the region by providing new jobs (while the bulk of the capital is fleeing the country)but holding the reins over water resources in one of the driest landscapes on Earth while performing one of the most water-intensive extraction processes. After all, in the lithium mining game, water is what matters the most.
These âmega-miningâ companies extract lithium by pumping up the brine from beneath the salt crusts. They then allow the desertâs formidable sun to evaporate up to 95% of the estimated 2 million liters of water used per tonne of lithium. At the same time, they release massive amounts of carbon stored securely below into the atmosphere as CO2. This brine, which starts turquoise and turns deep yellow as the lithium concentration in the water hits 6%, is then processed chemically to extract the lithium used in rechargeable batteries.
This operation is a direct assault on biodiversity and the climate. Each year, it depletes staggering amounts of water from the desertâs water cycle and threatens underground freshwater reserves with salinization through contact with brine. The communities already grappling with water shortages bear the brunt of this destruction, as do the animals and pastures that rely on salt flats naturally filtering water through soil and rock.
Whoâs Really Controlling Argentinaâs Lithium?
â First, we have Litica, controlling over 320,000 hectares. Litica is the lithium arm of Pluspetrol, Argentinaâs third-largest oil company, owned by Edith RodrĂguez, Argentinaâs richest woman. And conveniently headquartered in the Netherlands.
â Next, Arcadium Lithium controls at least 232,637 hectares. Born from a 2024 merger of Livent from the USA and Allkem from Australia, Arcadium is now the third-largest lithium producer globally. Its owners include four of the worldâs largest asset managers â Blackrock, HSBC, JP Morgan, and Vanguard, as revealed by an investigation by NGOs Ruido and Fundeps.
â Then thereâs Integra Lithium, controlling at least 163,000 hectares. This is a division of Integra Capital, the investment company owned by JosĂ© Luis Manzano, an Argentine businessman and former Minister of the Interior.
â Ganfeng Lithium, a Chinese miner, controls at least 122,432 hectares in partnership with Lithium Americas from Canada and Jujuy state-owned JEMSE.
â Finally, we have Rio Tinto, with 83,000 hectares. In January 2024, this British-Australian mining behemoth was set to begin construction of a processing plant with a capacity of 3,000 tonnes of lithium per year in Salta, as reported by financial outlet Ămbito Financiero.
These âBig Fiveâ control a massive piece of my countryâs lithium cake. They create a local subsidiary to buy the land, but the real owners are foreign. Case in point: Ganfeng operates through EXAR, an Argentina-registered entity.
And just like that, in lithium mining, as in other types of mining, we see companies amassing land, claiming deposits, and then selling projects to large companies with the capacity to exploit them. Permits are bought and sold, changing hands, making environmental controls and regulations dubious.
In short, Argentinaâs lithium is in the grip of foreign capital, facilitated by a mining regime thatâs perfect for speculative business.
Chainsaw to Education, Greenlight For Extractive Industries
President Javier Mileiâs right-wing administration is ruthlessly slashing funding for education and scientific institutions.
With annual inflation already close to 300%, the governmentâs freeze on this yearâs budget for universities and scientific research is essentially an 80% cut in real terms, according to the University of Buenos Aires, which this month declared itself in an âeconomic emergency.â As a result, campuses canât even pay their electricity bills, and climate research is on the brink of collapse. In response, Argentinaâs researchers, students, and citizens (myself included) took to the streets in a nationwide demonstration on Tuesday, April 23.
Carolina Vera, an Argentine meteorologist and former vice-chair of a key working group for the latest assessment report from the Intergovernmental Panel on Climate Change, stated that she had never witnessed âsuch a level of dismantling through the reduction of research grants and programs with such disdain for knowledge.â
Milei has been calling climate change a âsocialist lieâ since 2021 and is even questioning the purpose of public education, accusing it of âbrainwashing peopleâ with Marxist ideology.
Milei doesnât only dismiss scientific views on global warming but also has a dim view of environmental protection. He went so far as to state during his presidential campaign that a company should have the freedom to pollute a river as much as it desires.
Any coincidence with the current state of lithium mining in Argentina is no coincidence. It is that obvious:
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On the other hand, the International Monetary Fund, in an economic review published on February 1, expressed its support for investments that would increase the exploitation of Argentinaâs oil and gas reserves and (oh, what a surprise) metal mining to boost exports and government revenues. This review led to the release of $4.7 billion to support the governmentâs policies.
World Bank head Ajay Banga has even praised the direction of Argentinaâs economy and looks forward to working closely with the government.
How can they overlook the human cost of this brutal economic shock therapy?
Is this the answer when peopleâs lives and their democratic rights are at stake? Or are they just the Trojans hiding behind the horse of funding while expecting to steal a hidden treasure?
Pensions are getting cut, jobs are vanishing by the thousands, and public services are falling apart. Unemployment is soaring, and more people are falling into poverty.
Meanwhile, Argentina is facing a surge in climate and weather-related challenges, from torrential El Niño-induced rains causing a persistent dengue epidemic to scorching heat and wildfires. On top of that, weâre anticipating a severe drought from November to February 2024â2025 as El Niño swings to La Niña. The National Meteorological Service is crucial in forecasting these conditions and spreading the word in advance, but it recently lost 73 technicians, making it harder to anticipate disasters and limiting its ability to research climate change.
Donât be fooled â denying climate change isnât based on science. Itâs an excuse to let destructive extraction activities run rampant, sidestepping environmental policies that could control the use of natural resources and wealth concentration.
We certainly need to pursue the electric revolution in a massive phase-out of fossil fuels. Saving the planet, however, should not come at the cost of destroying fragile ecosystems and communities. Revision to the legal framework that governs lithium mining is essential, as the current system privileges the interests and whims of multinational, abusive companies like Minera Exar.
Because lithium mining cannot be considered a long-term or just solution if it contributes to:
water depletion and air pollution and their cascading consequences
depleting instead of improving the lives of local ecosystems and communities
lack of research in fossil-free-energy improvements
Be loud.
Colonialism and imperialism at their most brutal, as usual. It's too bad Argentina as the leadership it has.
I agree with Diana. But we may get a president fullybin philosophical cahoots with Argrentine's if we don't watch out. Very informative essay, Ricky, thanks for your activism too!