China moves to gain control over Lithium deposits worldwide; invests $2 b

Beijing: China is decisively moving to gain control of Lithium resources around the world which is an important element in the manufacturing of batteries for electric vehicles. A few days ago, China announced investing more than $2 billion in Argentina, a Latin American country known to be part of the Lithium Triangle. It has been revealed that this investment is for Lithium manufacturing projects.

There has been an exponential growth of electric vehicles driven by factors such as pollution and climate change. Electric cars are estimated to account for 10% of the total vehicle sold globally in the next decade. These vehicles require Lithium-Ion batteries, which will trigger a huge demand for Lithium to fulfil the requirements of the electric vehicle manufacturing companies.

Currently, Australia, Chile, China, Argentina, and DR Congo are the countries having the biggest Lithium deposits. Despite having huge Lithium deposits in the country, China is trying to establish its dominion in the Lithium market by acquiring control over resources in other countries. Investment worth billions of dollars in Argentina for the Lithium deposits clearly indicates China’s strategy.

China is investing in two projects in the Salta Province of Argentina for a production capacity of 150,000 tonnes of lithium carbonate by 2024. China is engaged in similar investment efforts in Bolivia and Chile, the other two countries from the Lithium Triangle, along with Argentina. As these countries hold 50% of the global Lithium deposits, the Chinese plans raise concerns for the international community.