From salt flat to battery: the lithium value chain
Between the salt flat and the electric car there are several value-adding stages. Where Argentina stands today and where it could move next.
The stages
The chain starts at the salt flat, with brine extraction. Then comes the chemistry: turning that brine into battery-grade lithium carbonate or hydroxide. Those compounds feed the making of cathode materials (LFP, NMC), which are assembled into cells and, finally, into batteries for electric vehicles and storage.
As you move up the chain, value added grows — and so does technological complexity and required investment.
Where Argentina stands
Argentina mostly exports lithium carbonate, the first chemical link. It is a solid position thanks to its costs, but much of the value of cells and batteries is captured downstream, largely in China.
Some projects aim to integrate more stages: POSCO, for example, is developing at the Hombre Muerto salt flat a chain combining phosphate, hydroxide and carbonate, with a plan of up to US$4,000 million. The underlying debate is how much of the chain can — and should — be based in the country.