World’s largest lithium producer Argentina said it will consider creating an OPEC model cartel on the metal.
According to country’s Ministry of Science and Technology, Argentina, Bolivia and Chile will control the lithium market in near future and together could do it with a sort of OPEC-like arrangement.
Increased production of lithium in Argentina was marked by the opening of lithium mine in northwestern Jujuy province in late 2010. Currently lithium production in Argentina has increased from 36.000 metric tons to 38.000 metric tons after the government opened Olaroz mines.
The three countries, which Forbes magazine calls the “Saudi Arabia of lithium,” would establish “control mechanisms for the sale of lithium carbonate, avoiding the lower prices that come with overproduction.
Salta, along with the northern provinces of Jujuy and Catamarca, contain Argentina’s largest lithium deposits.
Argentina has about 10 percent of the world’s reserves, after Chile, with 25 percent in Atacama, in the north of the country, and Bolivia, which holds about half the world’s supply in Uyuni, the world’s largest salt flat.
Sales of lithium by Chile, on the other hand, represent 44 percent of worldwide revenue, followed by Australia, with 25 percent, China with 13 percent and Argentina with 11 percent.
A ton of lithium, worth $2,500 in 2004, now sells for around $6,000.
While lithium is also used for cell phone and computer batteries, experts expect its greatest use will be in electric cars.
Last year Bolivia announced a $900 million investment for lithium in three phases: production of lithium carbonate, then metallic lithium and finally, after 2014, lithium batteries.
In Argentina, Sales Jujuy, which belongs to the Australian company Orocobre and is associated with automaker Toyota, just received the go-ahead to mine lithium and potassium.
Several other companies are exploring Argentina’s lithium-mining areas, including the Canadian Lithium Americas, the Australian Ady Resources and the French company Bollore et Eramet.
According to country’s Ministry of Science and Technology, Argentina, Bolivia and Chile will control the lithium market in near future and together could do it with a sort of OPEC-like arrangement.
Increased production of lithium in Argentina was marked by the opening of lithium mine in northwestern Jujuy province in late 2010. Currently lithium production in Argentina has increased from 36.000 metric tons to 38.000 metric tons after the government opened Olaroz mines.
The three countries, which Forbes magazine calls the “Saudi Arabia of lithium,” would establish “control mechanisms for the sale of lithium carbonate, avoiding the lower prices that come with overproduction.
Salta, along with the northern provinces of Jujuy and Catamarca, contain Argentina’s largest lithium deposits.
Argentina has about 10 percent of the world’s reserves, after Chile, with 25 percent in Atacama, in the north of the country, and Bolivia, which holds about half the world’s supply in Uyuni, the world’s largest salt flat.
Sales of lithium by Chile, on the other hand, represent 44 percent of worldwide revenue, followed by Australia, with 25 percent, China with 13 percent and Argentina with 11 percent.
A ton of lithium, worth $2,500 in 2004, now sells for around $6,000.
While lithium is also used for cell phone and computer batteries, experts expect its greatest use will be in electric cars.
Last year Bolivia announced a $900 million investment for lithium in three phases: production of lithium carbonate, then metallic lithium and finally, after 2014, lithium batteries.
In Argentina, Sales Jujuy, which belongs to the Australian company Orocobre and is associated with automaker Toyota, just received the go-ahead to mine lithium and potassium.
Several other companies are exploring Argentina’s lithium-mining areas, including the Canadian Lithium Americas, the Australian Ady Resources and the French company Bollore et Eramet.
