Lithium in the energy Supply Chain:

Perspectives from Argentina and its relationship with semiconductor production.

In the current scenario, lithium has emerged as a key element in the supply chain, especially in the manufacture of batteries for electric vehicles and renewable energy storage systems. Argentina, with its vast lithium reserves in the Lithium Triangle, boasts a privileged position to capitalise on this growing global demand.

It is crucial to understand that the problem of electric energy is its storage source. That is why it is so important the generation of lithium-ion cells that can store this clean energy.
The importance of lithium in the energy supply chain is complemented by another aspect of vital importance like the production of semiconductors. The United States, China and Taiwan are critical links in the system of development, production and demand of these essential components for a wide range of electronic devices, from smart phones up to navigation systems for autonomous vehicles.
The intersection between lithium and semiconductor production not only reflects the complexity of the global supply chain, but it also underscores the importance of international cooperation and diversification of supply sources. While the United States dominates the development, innovation and patents in broad terms, Taiwan accounts for around 37 % of the world’s chips with its production plants. China is the world market and has also been pushing hard for greater autonomy in the generation of semiconductors, without the need for US technology. Restrictions on access to technology from the North on the Asian country are evident..
Argentina can then play a strategic role as a lithium supplier, strengthening its position in the world economy and diversifying its energy holding in addition to the already well-known and well-positioned Vaca Muerta hydrocarbons and the new booming projects such as “Palermo Aike” or the offshore Mar del Plata.
Currently, the demand for lithium continues to grow, driven by the transition to a cleaner energy matrix and the electrification of transport. This scenario offers Argentina a unique opportunity to boost its lithium industry, attracting investment and promoting technological development and innovation in the sector. Although it is certain that in recent weeks the low price of the mineral has kept the industry on tenterhooks, a stabilisation scenario is foreseen, with a strong increase in demand and production.

Current lithium carbonate extraction projects in Argentina must respect the environment and consider the rational use of water in the implementation of their projects. If these issues are not taken into account, not only will the environment be damaged but there is also a risk of extraction points being paralized due to lawsuits carried out by private parties or that the State itself will stop actions that could threaten the ecosystem.
Argentinean scientist Juan Carlos Bocich, backed by Elon Musk, warns of imminent global electricity shortages.
That is why the development of batteries for energy storage and the viability of new products and equipment are vital issues.
In short, lithium plays an essential role in the energy supply chain, while semiconductor production is critical to the digital economy. Argentina, by capitalizing on its lithium resources and fostering international collaboration, can become a key player in this scenario, offering opportunities for economic and technological development at both national and international level.

https://www.gestioneslupo.com.ar/
Author:
Ricado Lupo holds a degree in Security (IUPFA) and is a Gas and Oil Specialist (Austral University) He is director and Co-Founder of Gestiones Lupo, a company with more than 16 years of experience in the market, which offers security clearances, controlled materials and explosives for the oil & gas and mining industries.