Connect with us

International

‘We don’t eat lithium’: S. America longs for benefits of metal boon

Photo: Aizar Raldes / AFP

| By AFP | Martín Silva |

The turquoise glimmer of open-air pools contrasts sharply with the dazzling white of salt flats in Latin America’s “lithium triangle,” where hope resides for a better life fueled by a metal bonanza.

A key component of batteries used in electric cars, demand has exploded for lithium — the “white gold” found in Chile, Argentina and Bolivia in quantities larger than anywhere else in the world.

And as the world seeks to move away from fossil fuels, lithium production — and prices — have skyrocketed, as have the expectations of communities near lithium plants, many of whom live in poverty.

But there are growing concerns about the impact on groundwater sources in regions already prone to extended droughts, with recent evidence of tree and flamingo die-offs.

Advertisement
20241211_mh_noexigencia_dui_728x90
20240813_lechematerna_728x91
20240701_vacunacion_728x90
20231124_etesal_728x90_1
domfuturo_netview-728x90
20240604_dom_728x90
20230816_dgs_728x90
20230601_agenda_primera_infancia_728X90
CEL
previous arrow
next arrow

And there are scant signs to date of benefits trickling down.

“We don’t eat lithium, nor batteries. We do drink water,” said Veronica Chavez, 48, president of the Santuario de Tres Pozos Indigenous community near the town of Salinas Grandes in Argentina’s lithium heartland.

A poster that meets visitors to Salinas Grandes reads: “No to lithium, yes to water and life.”

Lithium extraction requires millions of liters of water per plant per day.

Unlike in Australia — the world’s top lithium producer that extracts the metal from rock — in South America it is derived from salars, or salt flats, where saltwater containing the metal is brought from underground briny lakes to the surface to evaporate.

Advertisement
20241211_mh_noexigencia_dui_728x90
20240813_lechematerna_728x91
20240701_vacunacion_728x90
20231124_etesal_728x90_1
domfuturo_netview-728x90
20240604_dom_728x90
20230816_dgs_728x90
20230601_agenda_primera_infancia_728X90
CEL
previous arrow
next arrow

Soaring prices

About 56 percent of the world’s 89 million tons of identified lithium resources are found in the South American triangle, according to the US Geological Survey (USGS).

The world average price rose from $5,700 per ton in November 2020 to $60,500 in September this year. 

Chile hosts the westernmost corner of the lithium triangle in its Atacama desert, which contributed 26 percent of global production in 2021, according to the USGS.

The country started lithium extraction in 1984 and has been a leader in the field partly because of low rainfall levels and high solar radiation that speeds up the evaporation process.

But Chilean law has made it difficult for companies to gain concessions from the government since the dictatorship of Augusto Pinochet declared the metal a “strategic resource” for its potential use in nuclear bombs.

Advertisement
20241211_mh_noexigencia_dui_728x90
20240813_lechematerna_728x91
20240701_vacunacion_728x90
20231124_etesal_728x90_1
domfuturo_netview-728x90
20240604_dom_728x90
20230816_dgs_728x90
20230601_agenda_primera_infancia_728X90
CEL
previous arrow
next arrow

Only two companies have permits to exploit the metal — Chile’s SQM and American Albemarle, which pay up to 40 percent of their sales in tax.

In the first quarter of this year, lithium’s contribution to the public coffers surpassed those of Chile’s mainstay metal, copper, for the first time, according to government records.

Yet, the environmental costs are starting to stack up, and locals fear there is worse to come.

This year, a study in the journal Proceedings of the Royal Society B found a link between lithium mining and a decline in two flamingo species in the Salar de Atacama.

“The development of technologies to slow climate change has been identified as a global imperative. Nonetheless, such ‘green’ technologies can potentially have negative impacts on biodiversity,” said the study.

Advertisement
20241211_mh_noexigencia_dui_728x90
20240813_lechematerna_728x91
20240701_vacunacion_728x90
20231124_etesal_728x90_1
domfuturo_netview-728x90
20240604_dom_728x90
20230816_dgs_728x90
20230601_agenda_primera_infancia_728X90
CEL
previous arrow
next arrow

In 2013, an inspection at the SQM site — which reported using nearly 400,000 liters of water per hour in 2022 — found that a third of carob trees in the area had died.

A later study pointed to water scarcity as a possible cause.

“We want to know, for sure, what has been the real impact of the extraction of groundwater,” said Claudia Perez, 49, a resident of the nearby San Pedro river valley.

She was not against lithium, said Perez, provided there are measures to “minimize the negative impact on people.”

‘Leave us alone’

Across the Andes in Argentina, the salt lakes of Jujuy host the world’s second-largest lithium resources along with the neighboring provinces of Salta and Catamarca.

Advertisement
20241211_mh_noexigencia_dui_728x90
20240813_lechematerna_728x91
20240701_vacunacion_728x90
20231124_etesal_728x90_1
domfuturo_netview-728x90
20240604_dom_728x90
20230816_dgs_728x90
20230601_agenda_primera_infancia_728X90
CEL
previous arrow
next arrow

With few restrictions on extraction and a low tax of only 3.0 percent, Argentina has become the world’s fourth-biggest lithium producer from two mines.

With dozens of new projects in the works with the involvement of US, Chinese, French, South Korean and local companies, Argentina has said it hopes to exceed Chilean production by 2030.

But not everyone is sold on the idea.

“It is not, as they say, that they (lithium companies) are going to save the planet… Rather it is us who have to give our lives to save the planet,” said Chavez, of Santuario de Tres Pozos in Jujuy province.

A neighbor, 47-year-old street food seller Barbara Quipildor added fiercely: “I want them to leave us alone, in peace. I don’t want lithium… My concern is the future of my children’s children.”

Advertisement
20241211_mh_noexigencia_dui_728x90
20240813_lechematerna_728x91
20240701_vacunacion_728x90
20231124_etesal_728x90_1
domfuturo_netview-728x90
20240604_dom_728x90
20230816_dgs_728x90
20230601_agenda_primera_infancia_728X90
CEL
previous arrow
next arrow

Will locals benefit?

About 300 kilometers (190 miles) north of Jujuy, the salar of Uyuni in Bolivia holds more lithium than anywhere else — a quarter of global resources, according to the USGS.

Half of the residents in the region — which is also rich in silver and tin — live in poverty, household surveys show.

The country’s former leftist president Evo Morales nationalized hydrocarbons and other resources such as lithium towards the start of his 2006-2019 mandate and vowed Bolivia would set the metal’s global price.

In Rio Grande, a small town near the Yacimientos de Litio Bolivianos (YLB) lithium plant, Morales’ plans were met with excitement.

In 2014 Donny Ali, a lawyer now aged 34, opened a hotel with the expectation of an economic boom. 

Advertisement
20241211_mh_noexigencia_dui_728x90
20240813_lechematerna_728x91
20240701_vacunacion_728x90
20231124_etesal_728x90_1
domfuturo_netview-728x90
20240604_dom_728x90
20230816_dgs_728x90
20230601_agenda_primera_infancia_728X90
CEL
previous arrow
next arrow

He called it Lithium.

“We were expecting major industrial technological development and more than anything, better living conditions,” he told AFP. “It didn’t happen.”

Hoping to boost the struggling lithium sector, the government opened it up to private hands in 2018, though domestic legislation has not yet denationalized the resource, and no private extraction has yet begun. 

“Some think that Bolivia will ‘miss the boat’ of lithium,” said economist Juan Carlos Zuleta. “I don’t think that’s going to happen.”

The real question, he said, is: when the boat comes, “will lithium extraction benefit Bolivians?”

Advertisement
20241211_mh_noexigencia_dui_728x90
20240813_lechematerna_728x91
20240701_vacunacion_728x90
20231124_etesal_728x90_1
domfuturo_netview-728x90
20240604_dom_728x90
20230816_dgs_728x90
20230601_agenda_primera_infancia_728X90
CEL
previous arrow
next arrow

The three countries are now looking towards battery manufacturing — possibly even building electric cars — as a way to turn the natural lithium bounty into a modern-day industrial revolution.

“There is a concrete possibility for Latin America to become the next China,” said Zuleta.

In the meantime, the Hotel Lithium stands empty.

Continue Reading
Advertisement
20241211_mh_noexigencia_dui_300x250
20240813_lechematerna_300x200_1
20240813_lechematerna_300x200_2
20240701_vacunacion_300x250
20231124_etesal_300x250_1
20230816_dgs_300x250
20230601_agenda_primera_infancia_300X250
MARN1

International

The AP agency sues the Trump Government after being banned for writing Gulf of Mexico

The American press agency Associated Press (AP) announced this Friday that it has sued three members of the Donald Trump Administration after being banned from the Oval Office and the presidential plane Air Force One for not complying with the directive of calling the Gulf of Mexico the Gulf of America.

“The press and all people in the United States have the right to choose their own words and not to be retaliated for it by the Government. The Constitution does not allow the Government to control freedom of expression,” the media maintains.

In its style guide, AP decided to continue calling the Gulf of Mexico “by its original name”, still mentioning the new name chosen by Trump, since it is a body of water that shares a border with Mexico and Cuba.

The White House formally blocked AP’s access to the Oval Office and Air Force One on February 14. “We are very proud of this country and we want it to be the Gulf of America,” Trump said on Tuesday.

The agency’s lawsuit, of 18 pages and filed before a federal court in Washington DC, alleges that they have decided to take this step to claim their right to editorial independence and prevent the Executive from coercing journalists to use only a language approved by it.

Trump signed the executive order to change the name to Gulf of America on January 20, the first day of his return to power. He later named February 9 as ‘ Gulf of America Day’.

The AP complaint is specifically directed against the president’s chief of staff, Susie Wiles, his number two, Taylor Budowich, and the White House spokeswoman, Karoline Leavitt.

This Thursday, more than thirty US media asked the Government to restore AP’s participation in presidential events and not to take into account “the editorial point of view” when limiting access to the White House.

Among the signatories are the television networks Fox News and Newsmax, with a conservative tinge, in addition to other large newspapers such as The New York Times, The Washington Post, CNN, The Wall Street Journal or The Atlantic.

AP highlighted when reporting on his complaint that this Friday Trump referred to that agency as “radical left-wing lunatics”: It is “a third-rate company with a first name,” he said about it, the main one in the country and founded in 1846.

Continue Reading

International

Buenos Aires advances legislative elections to May 18 and suspends the primaries

The Legislature of the city of Buenos Aires approved this Friday the suspension of the open, simultaneous and mandatory primary elections (PASO), a measure that, according to the deputy head of government, Clara Muzzio, “allows to save 20 billion pesos (about 18,894 million dollars)”, and advanced the legislative elections for May 18.

“The City Legislature suspended the PASO, a measure that saves $20 billion for neighbors,” Muzzio announced on Friday.

For his part, the mayor of the City, Jorge Macri, maintained that the PASO “were an expensive mechanism that only solved the problems of politicians, not of the people.”

The May 18 elections, which were originally scheduled for July, will be held through the Single Electronic Ballot system.

In that instance, the inhabitants of the city of Buenos Aires will elect their local legislators and, in October, they will have to return to the polls to define, together with the rest of the country, the composition of the chambers of Deputies and Senators.

“The fact that the elections are in May allows each Buenos Aires to decide on their own city, without being tied to national discussions,” said the mayor.

The project was approved in the Buenos Aires legislature with 55 votes in favor, 3 against and one abstention, after an agreement between the main political forces.

The suspension of the primaries in the City of Buenos Aires occurs one day after the Argentine Parliament approved the same measure at the national level.

The original project sent by the national government sought the elimination of the primary system but finally, given the lack of support for that objective, the government chose to promote an initiative that suspends them for this year.

The primary election system was first implemented in Argentina to define the candidates for the 2011 general elections, based on a political reform approved by Parliament at the end of 2009, with the aim of democratizing political representation, transparency and electoral equity.

According to the PASO system, to be qualified to compete in the general elections, candidates or lists of candidates must achieve at least 1.5% of the total votes in the primaries.

All parties are obliged to participate in the primaries, although they do not necessarily have to present more than one list of candidates to decide which one will lead to the general elections, an option for which the majority of the forces have opted in the last elections.

That is one of the reasons why the system has been questioned, among which are also its costs and the cumbersomeness of the organization.

Continue Reading

International

Trump threatens to impose tariffs on governments that apply digital fees to US companies

The President of the United States, Donald Trump, signed an executive order on Friday that threatens to impose tariffs on foreign governments that apply digital fees to US companies, including Spain, the United Kingdom and France.

The order states that “foreign governments have exercised a growing extraterritorial authority over US companies, particularly in the technology sector,” and directly cites the taxes on digital services that “several business partners” apply since 2019.

According to the text, the Trump Administration will impose tariffs on those governments that use taxes or regulations that are “discriminatory, disproportionate or designed to transfer significant funds or intellectual property from US companies to that government or its chosen domestic entities.”

Trump delegates to the US Trade Representative the possibility of “renewing investigations” on the so-called technology fees of Spain, the United Kingdom, France, Italy, Austria and Turkey, imposed in the first term of the Republican, and if so, “take all appropriate actions”, which would include the imposition of tariffs.

“US companies will no longer sustain failed foreign economies through fines and extortionational taxes,” says the White House document, which provides for a “process” for them to “report” these “disproportionate” measures to the Commercial Representative.

He also instructs him to investigate together with the Secretaries of the Treasury and Commerce whether in the European Union or the United Kingdom the use of products or services of US companies is “required or encouraged” to “undermine freedom of expression”, political activity or, “otherwise, moderate content”.

It also suggests to the Representative, among other things, to hold “a panel” with its partners of the T-MEC (Canada and Mexico) on the tax on digital services in Canada, and identify ways to achieve a “permanent moratorium on customs duties on electronic transmissions”.

The order does not mention any specific company, but mainly affects large technology companies such as Apple, Google (subsidiary of Alphabet), Meta and Amazon, which have precisely starred in a resounded approach to President Trump since he won the elections in November.

In his first term (2017-2021), Trump ordered to investigate the digital fees to his companies abroad and threatened to apply tariffs to the six countries indicated today; taxes were imposed in the government of his successor, the Democrat Joe Biden, and subsequently suspended.

Trump signed another executive order aimed at restricting access to US technology, especially in the field of artificial intelligence, what he calls “foreign adversaries”, including Cuba, Venezuela, Iran, Russia and China.

The executive order does not specify in detail what measures will be taken to restrict the access of these “foreign adversaries” to US technology.

Under the label of “foreign adversaries”, the order identifies China, Hong Kong, Macau, Cuba, Iran, North Korea, Russia and the “regime of Venezuelan politician Nicolás Maduro”, according to the text.

Trump justifies his decision with the argument that “economic security is national security” and maintains that the country must protect its sensitive infrastructures and technologies, from artificial intelligence to semiconductors and advances in biotechnology.

The executive order focuses especially on China, pointing out that companies linked to Beijing have used investments in the US to access key technologies and that the Chinese government is taking advantage of US technology to modernize its military apparatus.

Since his return to the White House on January 20, Trump has announced several restrictions on trade with the aim of balancing the trade balance and pressuring countries such as Mexico and Canada to make concessions on immigration and efforts against drug trafficking.

It has imposed a 10% tariff on China, which is in addition to the rates already applied during its first term (2017-2021).

Trump’s new restrictions come after his predecessor, Joe Biden, took steps to limit exports of semiconductors and artificial intelligence technology to China, which led Beijing to respond with export controls on graphite, a key material for electric vehicle batteries.

Continue Reading

Trending

Central News