“White diamond” Lithium contention heats up in South America China enters full-scale entry October 4 18:24
Lithium is the raw material for batteries used in EVs, electric vehicles, and smartphones.
As countries around the world aim to achieve decarbonization and carbon neutrality, the demand is increasing and the price continues to rise.
Lithium is also called "white diamond" because of its color and rarity.
In fact, it is presumed that they are concentrated in the highlands of South America, the "back side" of Japan.
Japanese companies have taken the lead in local development, but now Chinese companies have entered the market, creating a fierce competition.
(Sao Paulo Bureau Chief Ryusuke Kimura)
Visiting South America's "Lithium Triangle"
We headed to the mountains of the Andes near the border with Chile, in the northernmost part of Argentina, South America, to catch a glimpse of the "white diamond".
Since the altitude is over 3,000 meters, we acclimatized at a hotel at an altitude of 1,200 meters before heading to the site.
What appeared in front of the car was a pure white world.
It's winter in the Southern Hemisphere now, but it's not snowing.
It is a "salt lake" whose surface is made of salt.
Beneath this, there is water from which a huge amount of lithium has dissolved.
When this water is refined, it becomes a white diamond, a compound of lithium.
Battery society Increasing importance of lithium
Lithium is the raw material for the batteries that power smartphones and laptops.
As countries around the world accelerate the introduction of EVs and electric vehicles, their demand is growing rapidly.
Excluding North America, global lithium production rose 21% last year from the previous year, according to the USGS-National Geological Survey.
The breakdown of production by country shows that Australia is the largest with 55,000 tons, followed by Chile with 26,000 tons, China with 14,000 tons, and Argentina with 6,200 tons.
On the other hand, if we look at estimated reserves, we see a different world map.
Approximately 60% of lithium reserves are estimated to be concentrated in South America, with the top three countries being Bolivia (21 million tons), Argentina (19 million tons), and Chile (9.8 million tons). there is.
Due to its location, it is called the "lithium triangle" of South America.
Japan leads lithium development
Argentina is said to have the second largest lithium reserves in the world after Bolivia.
Toyota Tsusho, a trading company affiliated with a major Japanese automobile manufacturer, is one step ahead in local lithium development.
Since 2010, 12 years ago, we have been working together with local companies to develop it.
Water containing lithium is pumped up from the bottom of the salt lake and evaporated over a year to concentrate the lithium.
It refines a compound called "lithium carbonate", which is used in lithium-ion batteries.
Although it is located at an altitude of 3,900 meters, which is higher than Mt. Fuji, it is said that it is suitable for refining lithium because it has little rain and strong sunlight and wind throughout the year.
The produced lithium is mainly exported to Japan, but also to Asia, Europe, and North America.
Against the backdrop of expanding demand for storage batteries for EVs and electric vehicles, their prices are also rising rapidly.
At the time of the start of development 12 years ago, the price of lithium was about 700,000 yen per ton, but now it is more than 10 times that price, about 10 million yen.
The company is now embarking on a major expansion of its production facilities.
We plan to build new factory facilities and double our production capacity as early as the end of the year.
Shunsuke Sudo, Manager, Toyota Tsusho Argentina
, "The price of lithium has also risen, and it is now being called a 'white diamond.' I would like to do my best to ensure a stable supply of good quality lithium to Japan and other countries.”
China chasing after in a fierce competition
However, Japan is not the only country that is focusing on securing lithium in anticipation of the next "battery age."
The same is true for European, American and Asian countries.
Among them, China is advancing the acquisition of interests with a momentum that surpasses that of Japan.
China leads the world in the conversion to EVs and electric vehicles.
To meet the explosive demand for lithium, we are making South America one of our leading destinations.
Guangfeng Lithium, China's largest lithium developer, announced in July this year that it would purchase a lithium developer that has development rights to two salt lakes in Argentina for 130 billion yen.
Furthermore, in states where Japanese companies are expanding, we plan to start the world's largest lithium production by the end of the year in collaboration with local companies.
The company has three large-scale projects in Argentina.
China is also increasing its lithium imports from South America.
Nearly 50% of the export destinations of lithium carbonate produced in Chile and Argentina are China, which is the largest export destination, far ahead of the United States, Japan, and South Korea.
Japanese government adopts new strategy to improve storage battery manufacturing capacity
Originally, Japan has led the world in terms of technology and sales, with the basic technology of lithium-ion batteries established by Akira Yoshino, who won the Nobel Prize in Chemistry, and Sony being the first in the world to successfully mass-produce lithium-ion batteries in 1991. .
However, with the expansion of the market, the share of Chinese and Korean manufacturers has increased, and Japanese manufacturers are gradually losing ground.
Japan's share of lithium-ion batteries used in EVs, which was more than 51% in 2015, has fallen to less than half, about 21%, in 2020.
The Japanese government has a sense of crisis in this situation, and plans to focus on securing interests in lithium, which is a raw material.
At the end of August this year, the Ministry of Economy, Trade and Industry (METI) put together a proposal for a "storage battery industry strategy." The plan includes the training of 30,000 engineers in all related industries, and the strengthening of cooperation with resource-rich countries such as South America.
Argentinian government also welcomes
The Argentine government, which supplies lithium, also expects lithium development by companies in each country.
This is because the serious economic crisis continues, including rapid inflation at an annual rate of 78% and a sharp decline in the peso currency.
Currently, more than 20 development projects are underway in Argentina by companies from various countries.
It is estimated that in a few years when all projects are operational, lithium production will be about ten times what it is today.
Argentine Minister of Economy Massa
: "The world is fighting over resources such as lithium. Our country has large amounts of the most important resources the world needs. Argentina has an opportunity to take the lead." There is
Miguel Sorrell, Director General of Industry of Jujuy, Argentina
“The most interested countries are Canada, Australia, China and the United States. Because we understand the importance of lithium, if we don't invest now, we will miss the opportunity."
Residents at the development site Pros and cons?
Lithium development accelerates in Argentina.
When I interviewed people who live near the development site, I was surprised to find that their perceptions were largely divided.
In the village near the salt lake, which is being developed by lithium-related companies, new schools, public halls, and town squares are being built one after another.
Residents have welcomed the new jobs and revitalized the town.
Mario Jeronimo:
“People in this area used to have to go to work far away, but the development of lithium has changed everything. Education, welfare and employment have greatly improved. The community has come back to life and there are no negatives.”
On the other hand, there are voices of concern from those who make a living from tourism in the salt lake and the sale of salt.
If the development of lithium begins, tourists will disappear, and the local livelihoods such as tourism and salt sales will be lost.
Furthermore, we are worried that pumping up a large amount of groundwater will affect our domestic water supply.
Salt Lake Tourist Guide Neruda Lamas
"This salt lake is the land that we have inherited from our ancestors. It can have a negative impact on the environment.”
Lithium development in South America at the mercy of politics
Lithium development in South America has also been influenced by political dynamics.
Bolivia is part of the lithium triangle and is said to have the world's largest reserves.
In 2018, the German government, which is promoting the conversion to EV and renewable energy, concluded a contract with the Bolivian government to stably supply lithium for 70 years.
However, a violent opposition movement occurred among residents near the lithium development site.
After that, the contract was unilaterally canceled due to the birth of a leftist government that was opposed to lithium development.
Chile is also one of the countries forming the lithium triangle.
Lithium has been active in the development of lithium as well as copper, but the left-wing President Boric, who won the last presidential election, has taken the stance of shifting the direction of production to a more environment-friendly production.
Local environmental groups argue that developed countries such as Japan should take the lead in promoting environmentally friendly development for local residents.
Pia Marchejani, Environmental Policy Department, Environmental Organization FARN "
Japan, Europe, and the United States, which have technological capabilities, can lead mineral recycling. We also have technology that can extract lithium with less water. Our own benefits. We must not destroy the region for the sake of
for Japan's growth
Lithium is unevenly distributed in South America and other countries, and risks have been pointed out in its development.
On the other hand, it is also an indispensable resource for the world to achieve decarbonization in the future.
Working in the highlands of the Andes Mountains, I was struck by how important it is to promote stable development with an all-Japan approach in order to secure Japan's growth potential.
Sao Paulo Bureau Chief
Ryusuke Kimura
Joined in 2003
After working in the Berlin Bureau and the Economic Department, he is currently in charge of coverage of Central and South America.