Argentina relies heavily on hydrocarbons to meet its energy demand (87.5% of its energy matrix is fossil fuels). Despite significant oil reserves, its domestic production cannot meet its demand, so it depends on energy imports. It has extensive reserves of both conventional and renewable resources, giving it great potential to become a key player in the global energy transition.
The energy transition has made lithium a critical element. In Latin America it is a priority issue that gained strength since the beginning of the second decade of the 21st century. The energy transition has forced the use of technology and inputs other than those related to hydrocarbons.
Lithium has gained an important place in the dispute for world hegemony. Since lithium was recognized as a key element for the energy transition of the vehicle fleet, it began to be considered as a strategic material.
Latin America stands out for its immense lithium reserves. Bolivia, Argentina and Chile are the three countries with the largest reserves of this material. Lithium and its exploitation in the region is a clash of interests. While the countries of the region themselves seek to take advantage of the growing demand for lithium to obtain fiscal resources from its exploitation, developed countries ensure access to it for the production of rechargeable batteries.
An increase in demand and use of land passenger transport has been observed. Its electrification is considered a plus for the environment and the economy. However, there is a debate about whether to take advantage of the lithium present on the ground or to invest in hydrogen production.
What is the best alternative in order to protect the environment and slow down climate change? Hydrogen is the most abundant and lightest element on Earth, but its molecule does not occur naturally in isolation. Lithium, different from H2, can be found in specific deposits. The most important is the "Lithium Triangle".
At present, there is no perfect energy source. Environmentally, the best alternative is H2 from water, which does not generate any pollutant after combustion. Its problem is that it is not yet economically or energetically viable.
The change in the world energy matrix plays an important role in the trade war and the dispute for hegemony. While the US wants to conserve oil as an energy source, China is pushing the switch to clean energy at lower prices on the world market.
In this context, lithium plays an important role, as the main input for batteries, including those for electric cars.
South America is a disputed territory now fostered by lithium as a strategic resource, as was the saltpeter that led to a war in the nineteenth century.
