Struggle for wealth: Can South America's lithium triangle create...

Struggle for wealth: Can South America's lithium triangle create new millionaires? interview with Oscar Vargas, #Argentina, # Chile, #Bolivia, #oscarvargasvillazon, #lithium, September 11, 2023. The Lithium Triangle, made up of Argentina, Bolivia and Chile, holds two-thirds of the world's lithium reserves. The three Andean nations together produce about 45,000 tons of the key metal, compared to about 60,000 tons for Australia, the world's largest producer. Consequently, the three governments are rushing to find partners. This is happening as analysts predict that demand for batteries for electric vehicles will rise at more than 22% annually through 2030. Argentine leadership Taking advantage of Chile's recent failed push to nationalize its lithium. Argentina is struggling to attract new investors and could attract $10 billion to $20 billion over the next five years as miners such as Lake Resources, Livent and Toyota Tsusho and a dozen Chinese companies rush to set up dozens of mines in its vast salt flats. "There are a lot of companies looking at Argentina," said industry consultant Oscar Vargas Villazon. "There are at least 20 projects planned to triple production this year. " All our customers are interested, including Chinese, Korean, Japanese companies, and they want it at any price." Argentina received $6 billion in private investment in 2022 to produce lithium in its vast provinces of Salta, Catamarca and Jujuy. "By the end of 2024, Argentina could produce 200,000 tons of lithium, surpassing Chile," said Vargas, remember that in June the EXAR mine (gangfeng lithium majority shareholder) third Argentine producer began production and in these months three more companies will join). Chile has promised some "flexibility" to work with private investors, even allowing them to be majority owners of non-strategic projects, a far cry from its election promises to drive private companies out of Chile. Investment opportunity The massive investment campaign, of course, could generate new millionaires as investors, executives and other entrepreneurs rush to get in on the action. The easiest way is to invest in these companies that have many advantages, but there will also be specialist funds and ETFs," said sector consultant Andy Leyland. One such vehicle is the ETF (LITT) from Sprott Lithium Miners. Endless challenges But investing in the triangle won't be for the faint of heart. Investors will have to navigate incomplete regulations and corrupt institutions that will make it difficult to calculate future returns. Moreover, the risk of social and political upheaval is acute. The indigenous communities of Jujuy in Argentina are already up in arms over water. *written by Ivan Cataño, NASDAQ