Deal Narrative 6: Caught in the energy transition: Can Argentina balance the global demand for lithium and community livelihoods in mining areas?

In the green energy transition race, lithium is the star athlete. As the world moves away from fossil fuels towards more sustainable power sources, it is relying more and more on this non-renewable resource to drive forward the energy transition. But keeping up with global demand for this “clean energy” component comes at a significant cost – including environmentally harmful extraction and processing practices and negative impacts on Indigenous and local communities in mining areas, from displacement to exploitation. Examining the case of Argentina, the fourth largest lithium-producer globally, this deal narrative explores if it is possible to overcome the conundrum of the “resource curse” to reap the benefits of rich natural resources while still protecting the environment to ensure a truly just green energy transition.

To date, 67 deals related to lithium mining projects in Argentina have been recorded in the Land Matrix database, most of which are in the exploration or construction phase, with only six already in production. Focusing on the complaints and demands of affected communities, this deal narrative investigates justice outcomes in the first three projects to enter the production phase: Olaroz (deal #3184) and Cauchari-Olaroz (deal #8742) in the province of Jujuy and Fénix (deal #8776) in the province of Catamarca.

Authors: Melisa Escosteguy, Lucía Cuellar, Carlos Ortega Insaurralde, Danya-Zee Pedra and Lucas Seghezzo

WHAT ARE DEAL NARRATIVES?

Deal narratives are investigations of specific LSLAs by the Land Matrix regional and global partners that provide an in-depth and detailed analysis of single deals in addition to its global database. This deal narrative focuses on Land Matrix deals #8776, #8742 and #3184. By making this information available, the Land Matrix aims to support broad engagement and information exchange, facilitating the continuous improvement of the data. The information on the deals is based on both secondary research and in-depth field research in the region involving the relevant stakeholders.

Acknowledgements

We would like to extend our deepest gratitude to the people of the Salar de Olaroz Cauchari and the Salar del Hombre Muerto for taking the time to talk with us. Without them this research would not have been possible. We would also like to acknowledge additional funding from the National Research Council of Argentina (CONICET).