In the heart of the Atacama Desert in northern Chile, vast turquoise and white evaporation ponds stretch like broken mirrors across the earth's crust. These are salt flats, and beneath their surface lies one of the most coveted resources of the 21st century: lithium. This lightweight metal, essential for electric vehicle batteries, smartphones, and renewable energy storage systems, has turned the so-called 'lithium triangle'—spanning Chile, Argentina, and Bolivia—into a stage for geopolitical, economic, and social tensions.
The 'lithium triangle' is estimated to hold more than 60% of the world's lithium reserves, according to the U.S. Geological Survey.
White gold and the global rush
The race to electrify transportation and store clean energy has sent lithium demand soaring. In 2025, the price of lithium carbonate experienced sharp swings, reflecting both investor enthusiasm and regulatory uncertainties. China currently dominates refining and battery manufacturing, but Latin America holds the raw material. This dependency has led governments worldwide—from the United States to the European Union—to seek direct deals with producer countries, generating a new dynamic of resource diplomacy.
In Argentina, the province of Jujuy has seen a surge in exploration projects, while in Chile, President Gabriel Boric's government pushed forward a National Lithium Policy that seeks to increase state control over extraction, creating a national company and public-private partnerships. Bolivia, meanwhile, is trying to attract foreign investment to develop its vast salt flats, though progress has been slower due to technical and political challenges.
The water and community dilemma
But the lithium rush is not without controversy. Conventional extraction, by pumping brine, requires enormous volumes of fresh water, a resource already scarce in the fragile salt flat ecosystems. Indigenous communities, such as the Atacameños in Chile and the Kollas in Argentina, have raised their voices to demand prior consultation, protection of their territories, and a fair distribution of benefits. In several cases, they have blocked projects or filed lawsuits.
Direct Lithium Extraction (DLE)
An emerging technology that promises to reduce water consumption and environmental impact. It uses selective absorbents to extract lithium directly from brine, without the need for large evaporation ponds. Several pilot companies are testing the method in the region, though it has not yet been implemented at commercial scale.
Between sovereignty and foreign investment
Governments in the region are torn between two models: Chile's, which seeks a strong state role and strategic alliances, and Argentina's, which has opted for a more open scheme to private investment, with sectoral promotion regimes. Mexico, which also has lithium reserves, nationalized its exploitation in 2022, though production is still incipient. The tension between attracting foreign capital and maintaining control over a strategic resource is constant.
What does this mean for the world?
How Latin America manages its lithium will have global repercussions. If extraction is carried out sustainably and with social inclusion, the region could become a pillar of the global energy transition, attracting investment and generating local development. But if environmental and social conflicts escalate, or if political instability hampers production, the battery supply chain could face bottlenecks, making electrification more expensive and delaying climate goals. The lithium triangle is not just a point on the map: it is a mirror reflecting the promises and contradictions of our energy era.