28 Introduction Argentina is one of the countries that constitutes what is known as the “lithium triangle,” the region situated in the Andes rich in reserves near the borders of Argentina, Bolivia, and Chile (Anlauf, 2017). Around 54% of the world’s lithium reserves are thought to be concentrated in the region (Dickson, 2018). Argentina currently has the third largest lithium reserve in the world and ranks fourth in terms of lithium production worldwide. Argentina ranks below China in this regard, despite having a much larger reserve of lithium and therefore a higher production potential (Garside, 2020b). Despite this enormous potential, Argentina’s rate of production of this resource stagnated from 2018 into 2019, suggesting weak market capitalization (Garside, 2020a). Nonetheless, Argentina is in a unique position to capitalize on the lithium within its borders through expansive mining projects. Lithium has grown considerably in importance in Western countries, with preparations to transfer energy sources from nonrenewable to renewable. The global lithium market was valued at $4.23B in 2019 and is expected to grow at a compound annual growth rate of 1.9% from 2020 to 2027. This growth rate signals the potential for a massive increase in demand for lithium and derived materials in the upcoming years, in part the result of a growing electric automotive industry. The potential goes beyond electrification of transportation as industrialized countries push toward cleaner energy to power their everyday lives; with technology, including computers, smartphones, home appliances, and so on, the demand for lithium-ion batteries will increase. The potential for storage goes beyond appliances, including use of lithium technologies in countrywide electrical grid infrastructures. Consequently, the demand for lithium is surging rapidly (Grand View Research, 2020). For example, in the US, public priorities over time have come to favor HARNESSING ARGENTINA’S LITHIUM WITH POSITIVE LOCAL IMPACT Anmol Shrestha Argentina has endured a recent economic crisis related to currency devaluation, massive national debt, and declining exports. The country’s lithium reserves have the potential to alleviate the burden of this crisis, if utilized effectively. This article discusses the estimated exponential increase in global lithium demands across the world in pursuit of cleaner energy and how Argentina can position itself within the global market to capitalize on this trend while ensuring the best possible outcome for Argentine communities inhabiting lithium-rich regions. Perspectives on Business and Economics, Vol. 38, 2020
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