LITHIUM AS A STRATEGIC RESOURCE

LITHIUM AS A STRATEGIC RESOURCE

LITHIUM AS A STRATEGIC RESOURCE

The present work has as objective to present certain global trends that, in 10 years, will impact current or future in Argentina. In this case, according to the discretion of the investigator, one of these trends mentioned above is the following: lithium as a strategic resource. The analysis and development of the same will allow the formulation of public policy proposals for a period of 10 years in relation to the same.

Prior to investigate in depth the trend, it is convenient to highlight what is to be understood as a global trend, with the goal of having a good sense of what was being referred to in the course of this work. Therefore, we understand that a global trend as “a pattern of behavior of the elements of a particular environment for a period of time.” With this in mind, this trend will be addressed from the perspectives of governance and strategic issues. Before a system of international anarchy and undergoes transformations constantly, it is necessary to have a clear understanding of the main issues that govern it. This goal is carried out in efficient manner with the proper planning and development of public policies, but not before a previous investigation of the trends in question. It is for this reason that this work, at the discretion of the investigator, has a tendency that should be taken into account for an optimal growth and development of the country.

Lithium as a strategic resource

The lithium is, without a doubt, one of the most sought-after in the global context. It is an alkali metal, which has gained importance in recent times due to their use in electric batteries and in the nuclear field, both derived from the technological revolutions of the previous century. It is primarily found in brines or salt flats of basins closed, and is considered a resource moderately abundant. However, it is necessary to note that 85% of its reserves are in the south american continent in what is known as the “triangle of lithium”, and within the countries that possess this high percentage, we find to our own. The north of our country concentrates the abundance of the resource, and found as the largest deposits of lithium in the Salar de Olaroz in Jujuy and the Salar del hombre Muerto in Catamarca. In terms of world production, our country is fourth on the list, with 8% of the same. The price of this resource is on the rise since the end of 2020, therefore, is the right time to start planning for a greater degree of prominence for the lithium in the coming years, as it is estimated that its demand will increase. 

However, its regulation and extraction mean a challenge from the perspective of governance. The extraction of lithium is carried out mainly by foreign investment, which possess the means necessary to carry it out correctly. In addition, as stipulated in the National Constitution, in article 124, all natural resources belong to the provinces in which they are located, and may be intended for the same consideration. A clear example of this last point is the Treaty interprovincial between Jujuy, Salta and Catamarca sanctioned on October 5 of this year with the goal of establishing “the Region of the Lithium”, which will share the same regulations and regulatory measures. Therefore, the State is faced with two challenges of equal magnitude: on the one hand, to ensure the proper social and economic development to the production and extraction of lithium may mean, and on the other hand, the preservation of the environment and the care of the same, that in the matter of the same, the country is not in their best conditions in relation to the Paris Agreement of 2016. 

In regard to the first problem, the provinces mentioned above have made it possible to differentiate the National State, as to the investments referred to. The instability characteristic of the country, and the controls in economic matters, create that investors think twice to invest. However, these provinces have sought to attract foreign investment, with an increase in the demand of lithium, have decided to opt for them, since the other two countries that make up the triangle of lithium, Chile and Bolivia, are more restrictive to foreign investment. In this way, have attracted investments from different sources, such as american or australian, which are established in the territory and extract the lithium. It is here where the State must ensure that they provide to the communities present sources of employment and economic development to the production entails. The interests of the great powers only include the craving of the resource in question, and tend to overlook the areas in which they invest. It is necessary, for this purpose, a governance firm that is able to respond to everything that the investors might overlook, commonly tends to happen with this type of investors. Although the source of work in this area has almost tripled in recent years, this does not mean that the State should be aware of the industry, always in favor of the communities present. To do this, you must try to improve the cooperation and the relationship with the provinces, for which the action is even more significant. Through a State-provinces, more meaningful, and a greater presence of the state, you will be able to coordinate more effectively everything that involves this resource so precious.

The second problem, which refers to the climate change, it is more complex. Our country does not seem to be going well on track in terms of the goals proposed for the reduction of the impact on the environment. Consequently, the monitoring of the impact that leads to the exploitation of lithium in our country is quite poor. The consequences of the extraction of lithium in the environment tend to be devastating. Within them, we can find: the alteration of the biodiversity present in the salt flats where it is extracted from the lithium, the use of water in places where it is scarce (in addition to pollution), the impact on the flora and fauna, among others. A fact not less, is the competition for water as mentioned previously, which is a scarce resource in the areas where the lithium is abundant. There, the first nations communities are faced with the problem of “compete” for the water to companies that require the extraction water. Again, it requires a State with a governance and institutions firm that are able to cope with this environmental situation. Require more scientific research to determine the full impact that can be generated by the mining industry in these regions, but it is clear that an impact is already evident, and the State must coordinate with the provinces to find the way to get the resource as precious no means damage abysmal for the environment and the landscape of the mining areas.

In conclusion, lithium has to be part of the future in the field of production and export of the country. First of all, you should consider whether the use of this resource will be devoted exclusively to the export, or, as convenient to the author, if you begin to develop an industry of its own in search of greater profits. To this end, a technological development, and education to cope with this second option, that the country needs beyond the topic of lithium. However, whatever the case may be, and as has been reiterated many times, it requires a governance and a State present and aware that you can operate in the best possible way, no matter what decision is concrete.

BIBLIOGRAPHY

● Colombo, Sandra Silvia and Barberón, Augustine (September 2019). Lithium, a strategic resource in the international geopolitics and south america. Institute of International Relations of the National University of La Plata (UNLP). Retrieved from: http://sedici.unlp.edu.ar/handle/10915/116254

● Spine, Mariano (2 August 2021).  White gold: Argentina could become a world power of lithium. Bloomberg Online. https://www.bloomberglinea.com.ar/2021/07/18/oro-blanco-el-litio-comienza-a-mostrar-sus-millones-y-el-gobierno-quiere-participar-del-negocio/

● Government of the Province of Jujuy (October 5, 2021). Treaty strategic. Jujuy, Salta and Catamarca created the Mining Region of the Lithium. Retrieved from: https://prensa.jujuy.gob.ar/litio/jujuy-salta-y-catamarca-crearon-la-region-minera-del-litio-n103878

● Government of the Province of Salta (September 29, 2021). Saenz announced that Salta, Jujuy and Catamarca created the Mining Region of the Lithium. Retrieved from: https://www.salta.gob.ar/prensa/noticias/saenz-anuncio-que-salta-jujuy-y-catamarca-crearan-la-region-minera-del-litio-78288

● Portal Investigates (7 November 2019). Lithium: a hidden treasure in the Argentine Puna. National university of La Plata. Retrieved from: https://investiga.unlp.edu.ar/especiales/litio-17104

● Repetto, Juan Manual (February 14, 2018). Lithium: What is the social and environmental impact of farms? On Earth, the Faculty of Agronomy of the University of Buenos Aires. Retrieved from: http://sobrelatierra.agro.uba.ar/litio-cual-es-el-impacto-social-y-ambiental-de-las-explotaciones/● Vázquez, Patricia I. (September 25, 2021). Lithium in Argentina: there are who know how to seize the moment. The Economist. Retrieved from: https://eleconomista.com.ar/economia/litio-argentina-hay-saber-aprovechar-momento-n45055