Lithium Exploration
South America’s white gold rush has begun
Declining lithium prices do not mean declining demand: in 2030, global demand for lithium is expected to exceed 2.4 million t/y of lithium carbonate equivalent, doubling the demand forecast for 2025. “If the world wants to evolve into a green energy economy, it will need every single lithium project that is currently on the slate to come into production,” said Steve Kesler, executive president at CleanTech Lithium.
Fortunately, explorers in the lithium triangle are active, and the Chilean and Argentine governments are pushing to advance the sector.
Chile
Chile has 69 saline environments; in 2024, the government declared 31 protected, two strategic (requiring state-owned Codelco or Enami to be a majority partner) and five with a Codelco and Enami presence, but not necessarily as a majority partner. This leaves 31 salt flats for exclusive private entity development. "Now that the government has defined the rules of the game and eliminated the elements of uncertainty, investors are starting to make decisions,” said Joaquín Villarino, executive president at Consejo Minero.
On April 15th, 2024, the government launched a request for Information (RFI) process for investors and private companies. The process lasted 60 days, and the results were announced in July. Finance minister Mario Marcel announced 54 firms from 10 countries submitted statements of interest to develop 88 projects. Any company can purchase lithium concessions in an area if it does not have other mining claims. The company must be granted a Special Operation Contract for Lithium (CEOL) by the government. “This news will allow us to define the lithium deposits for which the State will begin the process of awarding CEOLs, after carrying out an indigenous consultation process where applicable,” explained Minister Aurora Williams in the press release.
This should also help advance late-stage projects like Cleantech Lithium’s Laguna Verde and Francisco Basin, which resubmitted their CEOLs in April 2024 and will contribute a minimum annual production of 20,000 t of lithium carbonate each, according to Kesler. The firm also inaugurated a DLE pilot plant in Copiapó in May 2024. “This is designed to produce up to 1 tonne per month of battery-grade lithium carbonate. This further de-risks using DLE as a workable technology for the Salars in Chile,” said Kesler.
“Developing a supply chain outside China is crucial; we are committed to breaking free from this dependency by developing an alternative value chain in the Americas.”
Francois Motte, CFO, Aclara Resources
Exploration firm Lithium Chile is also advancing rapidly. In March 2024, the firm entered a Farm-In agreement with France based Eramet in four of the company’s Chilean properties—Llamara, Aguilar, Rio Salado and Aquas Caliente— covering an area exceeding 40,000 ha. Eramet will conduct a three-phase exploration program over 3 to 4 years, with a total projected cost of approximately US$20 million. Upon completing each phase, Eramet will earn share capital in the joint venture holding the mining tenements, eventually reaching up to 70% ownership by the end of phase three, with an option to achieve 100% equity. Lithium Chile’s flagship project, however, is located across the border in neighboring Argentina.
Argentina
Argentina may match— or potentially even surpass—Chile as Latin America’s leading lithium producer by 2030. The country holds 21.5% of the world’s global lithium resource. Underground resource wealth, however, is no guarantee of success. Above ground regulations and initiatives are the only way to advance the sector. As defined by the constitution, Argentina’s natural resources are controlled at the provincial level. In 2021, the leading provinces of the lithium industry in Argentina— Salta, Catamarca and Jujuy—signed the interprovincial treaty creating the Lithium Mining Region to promote the economic and social development resulting from the extraction, production, industrialization and commercialization of the mineral, its products, and derivatives.
Salta-ing to new heights
One of Argentina’s most advanced mining provinces is Salta, which is home to prominent companies Livent and Allkem (now Arcadium Lithium). The province houses a portfolio of 24 advanced lithium exploration projects, five pilot plants and three more in construction. “Salta stands out as one of the most mining-friendly jurisdictions, not only within Argentina, but also in the broader region. The provincial government of Salta actively supports mining endeavors, ensuring that regulatory processes are carried out efficiently to facilitate proper project development,” said Gabriel Rubacha, CEO and founder of NOA Lithium Brines, an exploration company with three assets in the province.
The company recently delivered its maiden resource for its flagship project, Rio Grande, “This showcases approximately 2.3 million t of lithium carbonate equivalent (LCE), with around 1.5 million t categorized as measured resources. We have explored 4,400 ha out of 37,000 ha of mining properties in Rio Grande,” said Rubacha.
Also among Salta’s 24 projects is Lithium Chile’s Arizaro project, which received preliminary results from its prefeasibility study supporting a 25-year mine life with 25,000 t/y production. “We observed preliminary results indicating a 5-10% increase in economic confidence over the PEA, which valued the project at US$1.8 billion with an 8% discount rate and 29% pre-tax IRR. The pre-feasibility has successfully reduced OpEx from US$5,300/t to US$ 4,200/t, marking a 20-25% improvement in cost per metric ton produced,” Steve Cochrane, president and CEO commented.
American Salars Lithium is a new entrant in the province. “We published a maiden resource of 760,000 t lithium carbonate shared with our neighbor at Pocitos 1, and 457,000 t lithium carbonate on the Candela II project on the Salar Incahuasi,” said Nick Horsley president and CEO.
Leaving a (Cata)-marca
At the end of 2023, Catamarca had a portfolio of 22 mining projects: two in production (one lithium, one gold), three lithium projects under construction, and three in advanced-stage exploration (one of which is lithium), and 14 early-stage projects. Among those are Arcadium Lithium’s (previously Livent) Fénix and Sal de Vida (previously Allkem) projects.
The one advanced stage lithium exploration project is Lake Resources’ Kachi project. “As of December 2023, we completed work up to the Definitive Feasibility Study (DFS). The Kachi reservoir boasts 10.2 million t of LCE, predominantly categorized as measured and indicated resources. Our brine quality consistently averages 250-300 mg/L,” said David Dickson the CEO.
Lake Resources partnered with Lilac Energy Solutions to create a pilot plant. “This processed 500 million liters of brine to produce over 200,000 liters of lithium chloride. From this, we converted 2,000 liters into battery-grade lithium, achieving an impressive 99.9% purity. The plant aims to produce 25,000 t/y of LCE,” said Dickson.
The white gold rush in South America is gaining momentum. Developments in the lithium triangle underscore the region's crucial role in meeting the growing global demand for lithium as the world transitions to a green energy economy.
Article header image courtesy of Lithium Chile