Latin America Lithium Mining Market

Latin America Lithium Mining Market Size and Share: 

The Latin America lithium mining market size reached 63,15,000 Tons in 2024. Looking forward, IMARC Group expects the market to reach 1,24,16,000 Tons by 2033, exhibiting a growth rate (CAGR) of 7.20% during 2025-2033. The market is growing steadily due to amplifying need for lithium in electric vehicle batteries and renewable energy storage systems. Moreover, robust reserves, especially in Chile and Argentina, establish the Latin America as a major global supplier in this expanding industry.

Latin America Lithium Mining Market Trends:

Heightening Demand for Lithium in EVs 

The notable increase in the manufacturing and adoption of electric vehicle (EV) is driving substantial demand for lithium in Latin America, especially in countries, such as Mexico, Brazil, and Argentina. As per industry reports, Latin America's vehicle market totals approximately 5 million units annually, with Brazil and Mexico contributing 70% of this volume. These two countries host at least five EV production plants, with six more planned by 2027. Additionally, Argentina, Chile, Colombia, and Peru account for another 20% of the market. Moreover, automakers are currently seeking stable lithium supplies to address the demands of lithium-ion batteries, which are integral components in EVs. This demand is further propelled by global inclination towards sustainable energy systems and decarbonization, prompting Latin America’s lithium producers to scale up operations. Furthermore, with the world transitioning towards cleaner transportation, the lithium mining sector in Latin America is rapidly becoming essential. In addition, the Latin America’s abundant lithium reserves establish it as a tactical player in the supply chain, catering to the accelerating global demands.

Expansion of Mining Projects and Investments

Latin America lithium mining industry is experiencing an escalating expansion of new mining projects and significant international investments. Companies from major economies, such as Europe, China, and the United States, are heavily investing in the Latin America's lithium resources to acquire a steady supply. For instance, in June 2023, CATL, a China-based leading EVs battery manufacturer, announced a significant investment of $1.4 billion to support the development of Bolivia's vast, yet largely untapped, lithium reserves. The agreement links CATL with Bolivia's salt flats, which hold the world's largest lithium resources. Moreover, substantial investments are also being channeled into augmenting production capacity, enhancing extraction methodologies, and establishing new lithium-rich mining sites. This expansion is not only bolstering local economies but also strategically placing Latin America as a major hub for lithium extraction. In addition, governments in countries such as Chile and Argentina are supporting foreign participation and providing beneficial incentives and regulatory aid, further strengthening the Latin America’s dominance in the global lithium supply chain. For example, in June 2024, Argentinian government announced plans to significantly expand its lithium supply by launching four new mining projects, expected to increase annual capacity by 79%, equivalent to 202,000 metric tons. The first project, Eramet SA and Tsingshan Holding Group Co.'s Centenario Ratones, is set to inaugurate in July 2024.

Rising Emphasis on Sustainable Mining Practices

Sustainable mining practices are rapidly becoming a central trend in Latin America’s lithium sector as environmental concerns escalate globally. With the increasing usage of electric vehicles and demand for renewable energy storage systems, stakeholders are rapidly demanding responsible mining practices that can significantly reduce environmental impact. In line with this, producers in Latin American lithium are actively adopting technologies that minimize carbon emissions, water consumption, and energy utilization. As per industry reports, wetlands in Argentina, Bolivia, and Chile face significant threats due to lithium mining, which consumes approximately 21 million liters of water daily. This extensive water usage is contributing to persistent droughts, agricultural decline, and a notable reduction in wildlife populations. Consequently, such countries are reinforcing stringent regulatory policies on mining operations to endorse sustainability and safeguard local ecosystems. Furthermore, the shift toward more eco-friendly lithium extraction is gaining traction, as major companies strive to balance resource exploitation with responsible management, responding to the magnifying concerns of various environmental groups and international investors.

Latin America Lithium Mining Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region/country level for 2025-2033. Our report has categorized the market based on source and type.

Source Insights:

• Brine
• Hard Rock

The report has provided a detailed breakup and analysis of the market based on the source. This includes brine and hard rock.

Type Insights:

• Chloride
• Hydroxide
• Carbonate
• Concentrate

A detailed breakup and analysis of the market based on the type have also been provided in the report. This includes chloride, hydroxide, carbonate, and concentrate.

Country Insights:

• Brazil
• Mexico
• Argentina
• Colombia
• Chile
• Peru
• Others

The report has also provided a comprehensive analysis of all the major country markets, which include Brazil, Mexico, Argentina, Colombia, Chile, Peru, and Others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Latin America Lithium Mining Market News:

• In October 2024, Rio Tinto announced the acquisition of Arcadium Lithium in an all-cash transaction valued at $6.7 billion. This tactical move will position Rio Tinto as one of the largest lithium producers globally. The acquisition includes key lithium mining assets in Argentina, a crucial player in the Latin American lithium market.
• In May 2024, Codelco, a Chile-based copper mining company, and SQM, a Chile-based world’s second largest lithium producer, finalized a definitive agreement to jointly develop Chile’s extensive lithium deposits in the Salar de Atacama. The agreement grants Codelco a majority stake, aimed at increasing government-controlled lithium production in the country.

Latin America Lithium Mining Market Report Coverage:

Key Questions Answered in This Report:

• How has the Latin America lithium mining market performed so far and how will it perform in the coming years?
• What is the breakup of the Latin America lithium mining market on the basis of source?
• What is the breakup of the Latin America lithium mining market on the basis of type?
• What is the breakup of the Latin America lithium mining market on the basis of country?
• What are the various stages in the value chain of the Latin America lithium mining market? 
• What are the key driving factors and challenges in the Latin America lithium mining?
• What is the structure of the Latin America lithium mining market and who are the key players?
• What is the degree of competition in the Latin America lithium mining market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Latin America lithium mining market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Latin America lithium mining market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Latin America lithium mining industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.