IMARC Predicts Lithium Mining Market in Latin America to Hit 12,416,000 Tons by 2033

Market Overview

The Latin America lithium mining market size was 6,315,000 tons in 2024 and is expected to reach 12,416,000 tons by 2033. The market is projected to grow at a CAGR of 7.20% during the forecast period of 2025-2033. The growth is driven by the rising demand for lithium in electric vehicle batteries and renewable energy storage, supported by significant reserves in Chile and Argentina.

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: 6,315,000 tons in 2024
• CAGR: 7.20%
• Forecast Period: 2025-2033
• The market growth is propelled by escalating lithium demand in electric vehicles (EVs) across Mexico, Brazil, and Argentina, which collectively account for 70% of Latin America's vehicle market of approximately 5 million units annually.
• Expansion of mining projects and international investments, including a $1.4 billion investment by CATL in Bolivia's vast lithium reserves, underline the sector's growth.
• Governments in Chile and Argentina actively promote foreign participation with incentives and regulatory support, enhancing Latin America's lithium supply chain dominance.
• Sustainable mining practices are increasingly emphasized due to environmental concerns; countries like Argentina, Bolivia, and Chile regulate to reduce water consumption and ecological impacts.
• The lithium market is being shaped by global decarbonization trends and the shift toward renewable energy systems, driving producers to scale operations.

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Market Growth Factors

The Latin America lithium mining market is primarily driven by the growing demand for lithium in electric vehicles (EVs). The region's vehicle market totals about 5 million units annually, with Mexico and Brazil contributing 70% of this volume. These two countries host at least five EV production plants, with an additional six plants planned by 2027. Argentina, Chile, Colombia, and Peru account for another 20% of the market. Automakers seek stable lithium supplies for lithium-ion batteries, vital for EVs. This surge is further fueled by the global trend toward sustainable energy systems and decarbonization, encouraging Latin American lithium producers to boost production capacity.

New mining projects and significant international investments are accelerating market growth. A notable investment is by China-based EV battery manufacturer CATL, which announced $1.4 billion in June 2023 to develop Bolivia's vast lithium reserves linked to the world's largest salt flats. Production capacity enhancement, improved extraction methodologies, and the establishment of new lithium-rich mining sites mark this expansion. Governments, particularly in Chile and Argentina, actively support foreign investments with incentives and regulatory support. For instance, in June 2024, Argentina announced plans to increase lithium supply by 79% or 202,000 metric tons annually via four new mining projects.

Sustainability concerns are shaping industry practices. Lithium mining consumes roughly 21 million liters of water daily, impacting wetlands in Argentina, Bolivia, and Chile, resulting in droughts, agricultural decline, and wildlife reduction. In response, these countries enforce stringent environmental regulations aiming to minimize carbon emissions, water use, and energy consumption during lithium extraction. This increased emphasis on eco-friendly mining balances resource exploitation with responsible management, aligning with the interests of environmental groups and international investors.

Market Segmentation

Source Insights:

• Brine: Consists of lithium extracted from saltwater solutions, a common and significant source in Latin America.
• Hard Rock: Includes lithium mined from solid rock deposits, representing an important extraction method within the region.

Type Insights:

• Chloride: A type of lithium compound derived through specific chemical processes.
• Hydroxide: Lithium hydroxide, used notably in battery manufacturing.
• Carbonate: Lithium carbonate, a critical battery-grade lithium chemical.
• Concentrate: Refers to concentrated lithium ores or processed forms, important in supply chains.

Country Insights:

• Brazil: A key country market with significant lithium mining activity.
• Mexico: Hosts lithium mining areas and EV production plants.
• Argentina: Notable for substantial lithium reserves and expansion projects.
• Colombia: Contributes to regional lithium supply.
• Chile: Home to robust lithium reserves and major mining operations.
• Peru: Part of the mining landscape in Latin America.
• Others: Includes additional regional countries engaged in lithium mining.

Regional Insights

Chile and Argentina are dominant regions in the Latin America lithium mining market with robust lithium reserves. The market is expected to grow consistently, supported by government incentives and international investments. For example, Argentina plans to increase lithium capacity by 79%, equivalent to 202,000 metric tons annually through new projects starting in 2024. These factors consolidate Latin America's position as a major global lithium supplier with a CAGR of 7.20% anticipated during 2025-2033.

Recent Developments & News

In October 2024, Rio Tinto announced the acquisition of Arcadium Lithium in an all-cash transaction valued at $6.7 billion. This acquisition positions Rio Tinto among the largest lithium producers globally and includes key lithium mining assets in Argentina. In May 2024, Chile-based companies Codelco and SQM finalized a definitive agreement to jointly develop lithium deposits in the Salar de Atacama, granting Codelco a majority stake to increase government-controlled lithium production in Chile.

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Key Players

• Rio Tinto
• Arcadium Lithium
• Codelco
• SQM
• CATL
• Eramet SA
• Tsingshan Holding Group Co.

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