Chinese investment expands in Latin American lithium reserves

Chinese corporations are consolidating control over lithium reserves in Latin America, specifically within the ‘Lithium Triangle’ of Argentina, Bolivia, and Chile, as well as in Mexico. This expansion is driven by the global demand for electric vehicle batteries and clean energy technologies.

Reports indicate a significant lack of transparency in these operations, as contracts and memorandums of understanding between Latin American governments and Chinese firms are often signed under confidentiality clauses. This has led to allegations from indigenous communities that state authorities and transnational companies are violating ILO Convention 169 by failing to conduct required ‘Prior, Free, and Informed Consultation’ processes.

Environmental experts have also raised concerns regarding deficient and incomplete Environmental Impact Assessments (EIA) approved by local ministries. In response to this growing Chinese influence, the United States has begun authorizing emergency trade agreements with regional countries to support North American firms and counter Chinese hegemony.