Market Overview
The Latin America lithium mining market size reached 6,315,000 Tons in 2024 and is expected to grow to 12,416,000 Tons by 2033, with a CAGR of 7.20% during 2025-2033. This growth is driven by increasing demand for lithium in electric vehicle batteries and renewable energy storage systems, supported by rich reserves in countries like Chile and Argentina. Latin America is positioned as a critical global lithium supplier amid rising global sustainability trends.
Study Assumption Years
- Base Year: 2024
- Historical Year/Period: 2019-2024
- Forecast Year/Period: 2025-2033
Latin America Lithium Mining Market Key Takeaways
- Current Market Size (2024): 6,315,000 Tons
- CAGR (2025-2033): 7.20%
- Forecast Period: 2025-2033
- The rising adoption of electric vehicles is substantially boosting lithium demand, particularly in Mexico, Brazil, and Argentina.
- Latin America's vehicle market accounts for about 5 million units annually, with Brazil and Mexico contributing 70% and Argentina, Chile, Colombia, and Peru accounting for 20%.
- Significant international investments are taking place, such as CATL’s $1.4 billion investment in Bolivia's lithium reserves.
- Governments in Chile and Argentina offer incentives and regulatory support to expand lithium production.
- Sustainable mining practices are emphasized to minimize environmental impact due to water-intensive lithium extraction.
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Market Growth Factors
The lithium mining market in Latin America is supported by a growing EV market. The Latin American automotive market is large with five million units sold per year, with Brazil and Mexico together making up 70% of the market. In these two countries alone, at least five EV production facilities exist or are planned by 2027, encouraging firms to invest in stable lithium supplies for their lithium-ion batteries and adding to the incentive for lithium mining. A global transition to renewable energy and decarbonization is another factor driving lithium demand.
Investment flows are also starting. In June 2023 CATL invested USD 1.4 billion to develop lithium projects in lithium-rich Bolivia that holds the world's largest lithium reserves. The investment is a demonstration of the growing interest of Latin American lithium projects. In June 2024, Eramet SA and Tsingshan Holding Group Co. opened four new mining projects in Argentina, including Centenario Ratones, which will produce 79% more lithium, or 202,000 metric tons per year.
On account of its environmental importance, companies have begun using green lithium mining methods that lower carbon, water, and energy footprints. In Argentina, Bolivia and Chile, people extract lithium and create 21 million liters of polluted water each day. The action of extracting harms wildlife with contribution to droughts. In response, these countries regulate with more strictness to encourage sustainability while protecting local ecosystems, and they develop lithium mining with ease.
Market Segmentation
Source Insights:
- Brine: Extraction of lithium from saline water sources, a key segment due to abundant brine reserves in the region.
- Hard Rock: Mining lithium from hard rock deposits, contributing to diversified lithium supply.
Type Insights:
- Chloride: Lithium compounds in chloride form used in various battery and industrial applications.
- Hydroxide: Lithium hydroxide, a critical compound for high-performance batteries.
- Carbonate: Lithium carbonate, widely used in batteries and pharmaceuticals.
- Concentrate: Lithium concentrates extracted before further processing.
Country Insights:
- Brazil: Emerging lithium mining activities with growing investments.
- Mexico: Key player in lithium demand driven by vehicle manufacturing.
- Argentina: Significant lithium reserves and expanding production capacity.
- Colombia: An important market in the lithium mining landscape.
- Chile: Major lithium reserve holder and mining hub.
- Peru: Developing lithium mining projects.
- Others: Includes other Latin American countries involved in lithium mining.
Regional Insights
Chile and Argentina stand out as dominant regions due to their substantial lithium reserves and major mining operations. The Latin America lithium mining market benefits from Chile’s and Argentina’s support through incentives and regulatory frameworks to encourage foreign investments and production expansion. These countries collectively help position Latin America as a strategic hub in the global lithium supply chain amid rising global demand.
Recent Developments & News
In October 2024, Rio Tinto completed the acquisition of Arcadium Lithium in a $6.7 billion all-cash transaction, positioning itself among the largest global lithium producers with key assets in Argentina. In May 2024, Codelco and SQM, two Chilean companies, agreed to jointly develop Chile’s lithium deposits in the Salar de Atacama, granting Codelco majority stake to boost government-controlled lithium production.
Key Players
- Rio Tinto
- Arcadium Lithium
- Codelco
- SQM
- CATL
- Eramet SA
- Tsingshan Holding Group Co.
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