South America's Lithium Triangle: Untapped Potential Amid Extraction Challenges
The Lithium Triangle in South America harbors 43% of identified global lithium resources, yet varying brine chemistry and water scarcity pose significant extraction hurdles.
South America's Lithium Triangle holds about 43% of the world's known lithium resources, making it a focal point for the global market. Despite its geological richness, the region faces considerable hurdles due to differences in brine chemistry and the availability of water, which complicate the transformation of these resources into a new supply of lithium.
A comprehensive review by geologist José Cabello, published in September in Andean Geology, evaluated 43 salt flats spanning Argentina, Bolivia, and Chile. This study utilizes scientific research, corporate disclosures, and governmental reports to gauge the lithium potential within this pivotal region.
Collectively, Argentina, Bolivia, and Chile are estimated to hold 64 million tonnes of identified lithium resources, contributing to a global total of roughly 150 million tonnes, as per the 2026 data by the US Geological Survey. The breakdown reveals Argentina with 28 million tonnes, Bolivia with 23 million tonnes, and Chile with 13 million tonnes, underscoring the region's importance in the lithium supply chain.
Cabello affirmed to MINING.COM that the review’s key finding reaffirmed the substantial quality and quantity of lithium reserves within the Central Andean salt flats. His analysis highlights more than 16 million tonnes of lithium across selected deposits in Argentina and Chile, utilizing estimates from individual deposits rather than relying solely on country-wide totals provided by the USGS.
It’s crucial to note that these figures reflect contained lithium, not lithium carbonate equivalent, a metric commonly referenced in project announcements. Additionally, the distinction between resources and reserves is significant; reserves refer specifically to the economically recoverable portion of a deposit under set conditions, a factor that varies dramatically across the region.
This complexity is amplified when considering the variations in deposit concentration, impurities, and groundwater behavior. A large lithium inventory does not guarantee project viability or detail potential recovery costs and environmental impacts. Currently, there are about 10 operational lithium extraction projects across Argentina and Chile, alongside several under development, as indicated by Cabello.
Geological Insights and Developmental Landscape
Cabello’s review situates the evaluated deposits within a broader geological landscape consisting of nearly 130 salt flats, saline lakes, and lagoons found in the Central Andes. These unique lithium-rich brines formed over millennia through the interplay of volcanic rock, tectonic activity, and a predominantly arid climate. Weathering processes release lithium from surrounding geological formations, while water channels it into closed basins. The evaporation of this water leads to the concentration of lithium along with other elements like potassium, boron, and magnesium.
One notable example is Chile’s Salar de Atacama, which showcases how favorable environmental conditions can foster lithium development. This area has become a leading lithium brine source, attributed to its dry climate, fewer impurities, and optimized export routes compared to some neighboring deposits.
Together, Argentina and Chile produced an estimated 79,000 tonnes of lithium in 2025, constituting about 27% of total global output, according to the previously cited USGS figures. Cabello pinpoints both brine quality and quantity as critical factors driving the future of lithium extraction, noting sites such as Altoandinos and Pedernales in Chile, and Hombre Muerto Oeste, Rincón, Sal de los Ángeles, and Sal de Vida in Argentina as particularly promising candidates for extraction.
Water Concerns and Extraction Innovations
The challenges of expanding lithium production are further compounded by the need to understand how extraction methods will impact local groundwater systems and the ecosystems that rely on them. Freshwater availability emerges as another critical factor in regions that are already characterized by low rainfall.
Direct lithium extraction (DLE) technology presents a potential solution for developing deposits less suited for traditional evaporation ponds. Companies are increasingly investing in DLE methods to shorten processing times and enhance the economic viability of lithium recovery from brines, according to Cabello’s findings.
In discussions with MINING.COM, Cabello underscored that DLE could significantly ease development by minimizing water consumption, making it a valuable asset in the water-scarce environments that host lithium-bearing brines. However, it’s essential to differentiate between the withdrawal of brine and the consumption of freshwater during extraction, as various technologies exhibit distinct water requirements. Some approaches may withdraw less brine yet consume more freshwater, necessitating careful evaluation of local conditions to optimize the choice of processing technology.
Cabello’s review excluded inferred resources, a category deemed less certain, suggesting that these parameters warrant further exploration. Future studies could aim to provide more detailed assessments of individual salt flats and identify smaller closed basins with exploration potential using remote reconnaissance.
