The Lithium Triangle is a geographical concept referring to a region in the Andes mountains of South America, encompassing parts of Argentina, Bolivia, and Chile. This area is defined by its vast deposits of lithium, concentrated in brine beneath high-altitude salt flats, or salars, such as the Salar de Uyuni in Bolivia, Salar de Atacama in Chile, and Salar del Hombre Muerto in Argentina. The concept gained prominence with the rise of lithium-ion batteries after their creation in 1991, as the mineral became essential for powering electronic devices and, more recently, electric vehicles (EVs) and renewable energy storage systems. The region holds approximately 50% to 60% of the world's identified lithium resources, making it a critical component in the global energy transition.
The primary mechanism for lithium extraction in the Triangle is through pumping the lithium-rich brine to the surface and allowing it to evaporate in large pools, a method that is cheaper than hard-rock mining but is water-intensive. The three countries have adopted different regulatory approaches: Chile treats lithium as a strategic resource under a 1979 decree, historically limiting extraction to a few companies under state-owned CORFO quotas. Argentina operates under a federal mining code that delegates resource ownership to the provinces, creating a more open, investor-friendly regime. Bolivia, despite holding the largest resource estimates, has the smallest production and manages its reserves under a state-led model through Yacimientos de Litio Bolivianos (YLB), created in 2017.
The Lithium Triangle is connected to the broader concepts of resource nationalism, green industrial policy, and geopolitical competition among global powers like China, the United States, and the European Union. A significant recent change occurred in April 2023, when the Chilean government announced a National Lithium Strategy to give the state, through companies like Codelco, a controlling role in future projects, though existing contracts remain exempt. This move reflects a trend toward greater state control over the resource, which is also seen in Bolivia's state-led model. The region also faces challenges related to Indigenous consultation rights under ILO Convention 169 and the environmental impact of water-intensive extraction in the arid Andes.