Peru targets local lithium battery production, official says

American Lithium

28/09/2022 20:03

By Marcelo Rochabrun
       LIMA, Sept 28 (Reuters) - Peru wants to produce lithium
batteries domestically, a government official said on Wednesday,
joining other Latin American nations with lofty ambitions to
industrialize their resources of the ultralight metal needed to
power electric vehicles.
    "We are already starting to act to see if we can develop a
battery industry," said Jaime Chavez, Peru's vice minister of
mines, at the Perumin mining industry conference. 
    Peru is the world's No. 2 copper producer and an attractive
destination for global miners. It has some lithium deposits in
the southern region of Puno which are currently being explored
by American Lithium Corp  LI.V . 
    But those deposits are significantly smaller than those in
the so-called Lithium Triangle, made up of Bolivia, Chile and
Argentina. 
    Batteries made from the ultralight metal lithium are key to
meeting the growing demand for electric vehicles as part of a
transition away from combustion engines. 
    "We have a lot of reserves and we think this is an
opportunity and a challenge to carry out (lithium) extraction
and value-added production," Chavez said. 
    To be sure, Peru currently produces no lithium and no
country in Latin America produces lithium batteries at a
commercial scale even if they do mine lithium. 
    Chile and Argentina rank as the world's No. 2 and No. 4 top
producers of unrefined lithium, respectively. Bolivia has the
world's largest lithium resources but has for years struggled to
mine them at a commercial scale. 
    Mexico nationalized its lithium resources earlier this year
and announced a state lithium mining company but has yet to
start lithium production. 
    Lithium battery production is currently dominated by China. 
 (Reporting by Marcelo Rochabrun; Editing by Josie Kao)
 ((marcelo.rochabrun@thomsonreuters.com; +55 11 5644 7768;))