Global lithium demand drives mining competition in Europe and Latin America

Global demand for lithium is surging as the energy transition accelerates, driving strategic competition between Europe, China, and the Americas. The International Lithium Association (ILiA) notes that demand has grown from 120,000 tons 15 years ago to 1.3 million tons today, with projections suggesting a fivefold increase by 2040.

In Europe, efforts to reduce dependence on Chinese refining are gaining momentum through domestic projects. In Portugal, Savannah Resources is advancing the Mina do Barroso project, which aims to produce approximately 183,000 tons of spodumene concentrate annually during its first 14 years. This aligns with the EU Critical Raw Materials Act, which mandates that the EU extract at least 10% of its consumption within its borders by 2030.

Latin America, particularly the Lithium Triangle comprising Argentina, Chile, and Bolivia, holds the world's largest reserves. While the region faces pressure from Chinese investment and competition from the US and Europe, experts suggest the transition offers broader opportunities beyond lithium, including other critical battery minerals like nickel, cobalt, manganese, and graphite.