South America container lithium battery system

China's approach to South American lithium is part of a comprehensive supply chain strategy. By 2024, China controlled approximately 60% of global lithium processing capacity, 77% of battery cell manufacturing, and produced 56% of the world's electric vehicles.

Olaroz saltflat near the border between Argentina and Chile, where the two biggest active lithium extraction projects are located. China's approach to South American lithium is part of a comprehensive supply chain strategy.

The most prominent feature of the LIB value chain is the remarkable technological and manufacturing concentration in Asia (China, Japan, and Korea) (see Figure 3). In terms of battery components (cathodes, anodes, separators), more than 65% of the capacity is concentrated in China, followed by Japan.

The lithium-governance frameworks in South America have diverse approaches (state-led, public–private, and private) to accomplish this goal. Yet, the corporate and manufacturing characteristics of the LIB supply value chain have important challenges for a different global insertion.

In 2023, China's Tianqi Lithium and Ganfeng Lithium collectively controlled access to nearly 40% of global lithium production through their South American operations and strategic partnerships.

This dominance aligns with China's 14th Five-Year Plan (2021-2025), which explicitly identifies lithium as a strategic resource for achieving the country's energy transition goals, including the production of 21.2 million electric vehicles annually by 2030.