South America Sparks Ahead in Clean Energy Shift

Chile and Argentina rise as global lithium heavyweights through bold partnerships and cleaner tech

10 Nov 2025

South America is no longer just a source of raw materials. It is the new nerve center of the global lithium boom. Once seen as resource-rich but underutilized, the continent is now reshaping how this critical battery metal is mined, processed, and traded.

The charge is being led by Chile and Argentina, where governments and private producers are rewriting the rules of the clean energy economy.

In Chile, a landmark partnership between state-owned Codelco and private miner SQM cleared its final regulatory hurdle in April 2025. The deal gives Codelco greater control over the Salar de Atacama, one of the planet’s richest brine deposits, while tapping SQM’s technical know-how. The arrangement blends public oversight with private agility, a model many see as key to keeping Chile competitive in electric vehicle and renewable energy supply chains.

Argentina, meanwhile, is moving at full speed. Lithium Argentina recently released a scoping study for its Pozuelos Pastos Grandes project, outlining plans for efficient scaling and cost control as the company prepares for commercial production. The country’s favorable investment climate and massive reserves are drawing a steady influx of international partners eager to secure long-term supply.

“The region is finally realizing its full potential,” said Santiago Ruiz, a mining policy analyst in Buenos Aires. “Governments and producers are working together to secure lasting roles in the energy transition.”

But the race is not without obstacles. Environmental concerns, particularly over water use in Chile’s Atacama Desert, continue to spark debate. Studies show that heavy brine extraction can disrupt fragile groundwater systems. Such challenges are pushing both countries to explore cleaner technologies, including direct lithium extraction, which promises higher yields with less ecological strain.

As demand for electric vehicles and renewable storage surges, South America’s lithium industry is poised for lasting influence. Through strategic alliances and a growing commitment to sustainability, Chile and Argentina are no longer just suppliers in the clean energy movement. They are becoming architects of its future.