China expands its lithium dominance in Latin America at the expense of water-strained ecosystems

"China has been unrivaled in the lithium market since it adopted a national policy of promoting the energy transition to reduce its dependence on imported fuels and guarantee its energy security. The so-called white gold is essential for the lucrative electric vehicle industry, dominated by the Asian giant, as it is used in battery manufacturing. Between 2021 and 2023, demand for lithium increased by 250%, according to data from the International Energy Agency."

"More than half of the world's lithium reserves are concentrated in the so-called lithium triangle, between Argentina, Bolivia, and Chile, which explains why China has set its sights on Latin America, with at least 28 projects linked to the lithium supply chain in five countries, including Mexico and Brazil. The opportunity brings foreign investment and access to emerging technologies, but the semi-arid salt flats that typically hold the reserves have seen their fragile ecosystems threatened by the high demand for water for extraction."

"Several of the strategic areas are also inhabited by Indigenous communities who, in recent years, have been demanding to be included in the prior consultation process, as ratified by international agreements, and denounce the reduction of their own access to water, which depends on underground sources. These are the conclusions of the recently presented report, China's Presence in the Lithium Sector in Latin America and the Caribbean, prepared by a group of institutions from various countries, grouped under the Working Group on Chinese Financing and Investment, Human Rights, and the Environment (CICDHA)."

"The document details how China has incorporated Latin America as a source of raw materials for the development of its alternative energy technologies, such as the manufacture of electric vehicles, photovoltaic panels, and wind power. The report focuses on lithium, but this dependency extends to all critical minerals, as Luis Cuenca, the Chilean director of the Latin American Obse"

Lithium demand has surged, rising 250% between 2021 and 2023, driven by electric vehicle and battery manufacturing. More than half of global lithium reserves are concentrated in the lithium triangle of Argentina, Bolivia, and Chile, prompting China to pursue Latin America as a raw-material source. China has linked at least 28 projects across five countries, including Mexico and Brazil, to the lithium supply chain. The extraction process relies on large amounts of water in semi-arid salt flats, putting fragile ecosystems at risk. Strategic areas are also home to Indigenous communities that seek inclusion in prior consultation processes and report reduced access to water drawn from underground sources. The same dependency pattern extends beyond lithium to other critical minerals used in alternative energy technologies.

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