China Secures Lithium in Latin America... "Accelerating Competition in Global Supply Chains"

Chinese President Xi Jinping Photo by Yonhap News

[Asia Economy Reporter Kim Daehyun] China is intensifying its competition for lithium dominance in South America, signaling an escalation in the global supply chain rivalry.

According to the Hong Kong South China Morning Post (SCMP) on the 22nd, China is proactively targeting the 'Lithium Triangle' in South America, where 56% of the world's lithium reserves are located, raising concerns among the United States and other Western countries.

Lithium, the key raw material for rapidly appreciating-value smartphones and electric vehicle batteries, is referred to as 'white gold' or 'new oil.' On the 6th, shortly after Argentine President Alberto Fernandez held a summit with Chinese President Xi Jinping in Beijing and announced participation in the 'Belt and Road Initiative' (一帶一路, the overland and maritime Silk Road), the spot price of lithium in the Chinese market hit 2 million yuan per ton (approximately 376 million KRW) for the first time?more than four times higher than a year ago.

Argentina, along with Chile and Bolivia, forms the 'Lithium Triangle,' and Chinese companies are the largest investors and buyers in Argentine lithium mines. As the electric vehicle industry rapidly grows, Chinese mining companies, battery manufacturers, and automobile firms are all competing to secure a stable lithium supply chain.

SCMP reported, "China and Argentina have become major players in the global lithium supply chain," adding, "China aims to capture a larger share of the Lithium Triangle in South America." It also noted, "With geopolitical tensions rising with the West and ongoing supply chain crises, lithium mining and refining are becoming politicized," and "the close ties between China and Argentina are unsettling Western countries."

Meanwhile, China has discovered a large domestic lithium deposit. Last year, the Guangzhou Institute of Geochemistry of the Chinese Academy of Sciences and the Qinghai Geological Survey announced the discovery of lithium, beryllium, tungsten, and other mineral deposits near the Qinghai-Tibet Plateau close to Mount Everest. According to estimates by the Chinese Academy of Sciences, the area is believed to contain approximately 1,012,500 tons of lithium.

This content was produced with the assistance of AI translation services.