Argentina, Bolivia and Chile are drafting a document pushing for the creation of a "lithium triangle Opec" similar to the Organization of Petroleum Exporting Countries (Opec) to reach a "price agreement" if the value of lithium ore fluctuates, the People's Daily reported on November 3, citing Efe news agency. The three foreign ministers held further talks on related issues during the 39th Economic Commission for Latin America and the Caribbean in Argentina in late October.
Argentina, Bolivia and Chile, which have huge lithium reserves and production potential, are known as the "lithium triangle" in South America. As of 2021, about 56 percent of the world's 89 million tons of known lithium resources are located in South America's "lithium triangle," according to the U.S. Geological Survey. The three South American countries account for about 30% of global lithium production.
Lithium is a key component of electric car batteries. At present, the demand for lithium in the international market has exploded. As countries around the world seek to wean themselves off fossil fuels, lithium production and prices have soared, with the global average rising from $5,700 a tonne in November 2020 to $60,500 a tonne in September this year, Agence France-Presse reported.
