MercoPress. South Atlantic News Agency

Argentina is promoting the idea of an OPEC-like for lithium

Bolivia’s Uyuni salt flat holds the largest proven reserves of lithium

Argentina is promoting the idea of an OPEC-like cartel for itself, Bolivia and Chile, which together control 85% of the world's reserves of lithium, a key component in electric car batteries.

“In the near future and with our production at such a high level, Bolivia, Argentina and Chile will control the lithium market,” said Rodolfo Tecchi, the director of the technology and science promotion division of the Argentine Ministry of Science and Technology. “They could do it with a sort of OPEC-like arrangement,” he added.

The three countries, which Forbes magazine calls the “Saudi Arabia of lithium,” would establish “control mechanisms for the sale of lithium carbonate, avoiding the lower prices that come with overproduction” he indicated.

Not everyone in the industry agrees, including the head of the Argentina chamber of mining industries in the province of Salta, Facundo Huidobro.

“The idea is a bit premature,” said Huidobro. “We have to make sure that investments have been made”.

Salta, along with the northern provinces of Jujuy and Catamarca, contain Argentina's largest lithium deposits.

Argentina has about 10% of the world's reserves, after Chile, with 25% in Atacama, in the north of the country, and Bolivia, which holds about half the world's supply in Uyuni, the world's largest salt flat.

Sales of lithium by Chile, on the other hand, represent 44% of worldwide revenue, followed by Australia, with 25%, China with 13% and Argentina with 11%.

A ton of lithium, worth $2,500 in 2004, now sells for around $6,000.

While lithium is also used for cell-phone and computer batteries, experts expect its greatest use will be in electric cars.