battery-hungry world turns to south america's 'lithium triangle' - lithium ion rechargeable battery

San Diego/Toronto (Reuters)-
Argentina is far from having soybeans and livestock to occupy its vast and fertile Pampas, but with valuable goods from another foreign investor whose prices and demand have soared and attracted new welcome.
Lithium, so-
Known as "white oil", it drives most parts of the modern world.
It is a small but largely irreplaceable component of rechargeable batteries for consumer devices such as mobile phones and electric vehicles.
It also has pharmaceutical and other applications.
More than half of the earth's mineral resources are found in the "Lithium Triangle" in South America, an ultra-mundane high
Plateau Lakes and bright white salt beaches across Chile, Argentina and Bolivia.
Until recently, this was not good news for investors.
Argentina and Bolivia lack predictability and a friendly business environment, and Chile maintains strict control over lithium production.
But all this will change.
Sale of National lithium deposits and shakes in Chile
In terms of the way the state manages resources, everyone's interest has been aroused since the early days.
Push mining companies to electric car manufacturers such as Tesla.
Ranked first in the world in Argentina.
Lithium producers after Chile and Australia, investors hope the new Mauritian government, which will take over in December, will signal a brighter future. Business-
The friendly Macri has begun a radical change in an attempt to bring the country back to economic Orthodox, to remove heavy capital controls, and to send a message that after more than a decade of protectionism, the country will open again.
"10 or 12 years ,(Argentina)was a do-not-invest zone.
The tone of business has just swung 180 degrees, "said Tom Hodgson, CEO of West lithium, which is developing a project in the country that is expected to start production next year.
Hodgson told Reuters at a mining conference in Toronto earlier this month that Argentina now has a "big opportunity" to build a lithium export business ".
Western lithium companies are working with South Korean steel maker POSCO, whose chairman met with Macri in Argentina last month and began building a new lithium plant
The exploration and mining company Orocobre is also developing a project.
But the best time for the company to benefit from the Argentine lithium revolution may be the United States. S.
FMC, agricultural chemical group.
The Cuban women's federation has produced a lithium battery Salar de Hombre dead salt in northern Argentina.
Lithium's share of FMC's revenue is small but still growing, with sales expected to be around $0. 25 billion this year. “Now the (Argentine)
The government is starting to change policy, which gives us more confidence that it will be a predictable cost.
FMC Lithium battery vice-"effective operation"
Said President Tom schnberg.
"We look forward to an important year --over-
The annual improvement of lithium in 2016, which we see will last until 2020.
According to professional consultant Stormcrow Capital, demand for lithium will exceed supply by 2023, with the largest share coming from rechargeable batteries.
Bolivia has more lithium resources than any other country, but commercially it could be "diverted for a long time," said Jon Hykawy, president of Stormcrow.
Bolivia faces natural challenges
Too much rain, other chemicals in the mixture
And a tricky investment environment.
However, Chile is popular with investors for its free-market credibility, and the dry desert climate is "perfect" for lithium production, said Brian Jaskula of the United StatesS.
Expert in geological survey of mineral commodities.
The main lithium producing area in Chile is the huge Salar de Atacama Salt apartment, the local SQM (SQM_pb. SN)and foreign-
Owns Rockwood.
During the reign of General Augusto Pinochet and a former son, 1980 of the land was privatized --in-
The law of the late dictator has a controlling stake.
But relations with the current left-wing government are not stable.
Over the past two years, it has clashed with authorities over market manipulation and questionable tax invoices, and has arbitrated with economic development agency Corfo on royalties. Now U. S.
Special Chemicals company Yabao is a strong square meter on the lawn.
Last year, the company bought Rockwood for $6 billion and then signed an agreement with Corfo to try to double Chile's lithium production. .
The Chilean government says it will make public
Private partnerships are the way forward and plan to provide more deposits for tenders. .
It denies favoring any company.
"Chile is willing to work with anyone who wants to explore and produce ore, provided they meet Chile's requirements and standards," Mining Minister Aurora Williams told Reuters . ".
However, bitbitran, head of Corfo, insists that private lithium investments must be "sustainable" for the benefit of Chileans ".
Yaobao and square meter refused to accept the story of the interview.
But at this month's investor conference call, SQM said it wanted to increase Chile's lithium production and focus on unspecified "opportunities around the world ".
Industry insiders warn that no matter how friendly the government is, the process of raising output is complicated.
This leaves battery manufacturers and other end users of lithium largely at the mercy of large suppliers.
In addition to Tesla, traditional car companies including Nissan and BMW are also operating in the booming electric vehicle industry.
Daimler, Germany, recently announced that it will develop a new lithium
Technology companies like Samsung and Foxconn are also key users.
They are keen to lock in deals as prices rise.
Lithium carbonate costs $6,400 per kilogram, up from $5,180 in 2011.
Opaque Chinese market prices are reported to be higher.
According to Ignacio Moreno, Chile's deputy mining minister, Tesla and other automakers have been to Chile to see if they can secure a future supply of lithium.
Tesla declined to comment on the negotiations, but said it had signed three agreements with exploration companies outside Chile that would "not provide all" lithium.
Battery manufacturers are "looking around the world for any source they can set up a joint venture, no matter how dangerous they are," Jaskula said . ".