{"id":218167,"date":"2025-10-22T15:41:12","date_gmt":"2025-10-22T15:41:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/218167\/"},"modified":"2025-10-22T15:41:12","modified_gmt":"2025-10-22T15:41:12","slug":"lithium-price-crash-hits-mining-towns-in-argentina-chile-bolivia","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/218167\/","title":{"rendered":"Lithium price crash hits mining towns in Argentina, Chile, Bolivia"},"content":{"rendered":"

Tolar Grande, a windswept settlement perched at 11,500 feet above sea level in northern Argentina, once received little more than a trickle of visitors. Then, in the late 2010s, hostels in the lithium-rich town began filling up with workers at mining companies, while the handful of small eateries shifted from serving the occasional tourist to feeding miners.<\/p>\n

\u201cMining absorbed almost everyone,\u201d Marta R\u00edos, who runs the civil registry in Tolar Grande, home to around 300 people, told Rest of World. \u201cAt first it was strange to see trucks all the time, buses full of workers \u2014 suddenly, there was no unemployment.\u201d<\/p>\n

As demand for electric vehicles soared, the so-called lithium triangle \u2014 spanning northern Argentina, Chile, and southern Bolivia \u2014 became the beating heart of the energy transition. Home to nearly half the world\u2019s<\/a> known lithium resources, the region drew a flood of foreign investors eager to secure \u201cwhite gold,\u201d as well as workers from across the country keen to cash in on the boom. The output of some of these mines ultimately ends up in batteries for Toyota<\/a>, Hyundai<\/a>, and Ford<\/a>.\u00a0<\/p>\n

But after peaking in late 2022, lithium prices have fallen sharply as supply outpaced demand with a weakening Chinese economy and slower EV sales growth. Large operators scaled back investment and cut staff, leaving locals who had redirected their businesses to serve the industry scrambling to find new clients or new work altogether.\u00a0<\/p>\n

\u201cIn many of these remote towns, there\u2019s no alternative economy,\u201d Mart\u00edn Fellner, a lawmaker in Jujuy, one of Argentina\u2019s largest lithium-exporting provinces, told Rest of World. \u201cCommunities themselves [are] asking for more mining projects because without them, there are no formal jobs, no decent salaries.\u201d<\/p>\n

At first, the lithium boom led to the creation or expansion of local catering companies, water suppliers, and even small security outfits in these towns, according to R\u00edos. Along desert highways, buses with signs that read \u201cat the service of mining\u201d became a common sight, part of the ecosystem that developed around the industry.<\/p>\n

\t\t\t\t\t\"A<\/p>\n

\t\tTrucks on the road to San Antonio de los Cobres, in the lithium-rich Salta Province in Argentina.<\/p>\n

\t\t\t\t\t\"A<\/p>\n

\t\tA billboard at Tolar Grande showing the agreement with mining companies for the maintenance of a highway.
\n\t\tAnita Pouchard Serra for Rest of World<\/p>\n

The price of lithium has plummeted roughly 80% from its 2022 peak, with prices currently hovering at around $10,000 per ton<\/a>. The impact on mining operations worldwide has been swift: In Australia, the world\u2019s top producer, companies have cut jobs<\/a> and shelved projects. In the U.S., large lithium ventures have been delayed<\/a> or cancelled as investors weigh the risks.<\/p>\n

Across South America\u2019s lithium triangle, several flagship mines<\/a> are running below capacity, with new investments delayed or pared down. For remote mining towns, the downturn has meant layoffs, shuttered camps, and fewer customers at shops \u2014 especially among smaller providers.<\/p>\n

\u201cLithium companies today don\u2019t have the means to finance expansions or grow their mines,\u201d Eduardo Gigante, a professor of lithium production at Austral University in Buenos Aires, told Rest of World. But if and when lithium demand rises again, Argentina will struggle to ensure supply if its current capacity remains static, or worsens, he said.<\/p>\n

In recent months, companies in the lithium triangle have tightened their belt \u2014 scaling back staff and freezing local contracts. \u201cIf companies don\u2019t have efficient cost management, they\u2019ll go under,\u201d Gigante said.\u00a0<\/p>\n

This has ripple effects in the remote towns that depend on them. In San Antonio de los Cobres, some 190 kilometers (120 miles) northeast of Tolar Grande, Mar\u00eda Delgado runs a small restaurant. During the boom, miners filled her tables. Today, they often sit empty.<\/p>\n

\t\t\t\t\t\"\"<\/p>\n

\t\tMarta R\u00edos in her office in Tolar Grande.<\/p>\n

\t\t\t\t\t\"An<\/p>\n

\t\tThe Planeta Puna restaurant delivers food to mining companies in Pocitos, Argentina.
\n\t\tAnita Pouchard Serra for Rest of World<\/p>\n

\u201cYou can feel the slowdown. We try to keep the dining room going mostly with locals,\u201d Delgado told Rest of World. \u201cLithium projects hire many people for construction or drilling, with lots of contractors involved. But once the platforms are built and the wells drilled, the contractors leave \u2014 and the jobs disappear.\u201d<\/p>\n

Along with the jobs came occasional support for education and sports programs, and modest improvements in infrastructure in some of these towns \u2014 plaques crediting mining firms for small schools, sanitation works, and public squares are scattered across the region. In Pocitos, an Argentine hamlet near the Chilean border, a plaza bears the name of Arcadium Lithium among several other donors.<\/p>\n

As major construction phases wound down, so did the perks.<\/p>\n

\u201cFor a while, families benefited from mining jobs,\u201d Julio Cruz, an Indigenous leader in Tolar Grande, told Rest of World. \u201cBut when drilling stopped, employment fell \u2014 we always knew these companies would only come for a season.\u201d<\/p>\n

It is not just the jobs that have disappeared. The towns also bear the scars of mining and related activities. Heavy truck traffic has damaged roads, while drilling operations have pierced the salt flats, leaving visible marks on landscapes that once drew tourists.<\/p>\n

\t\t\t\t\t\"A<\/p>\n

\t\tShops and restaurants in Tolar Grande.
\n\t\tAnita Pouchard Serra for Rest of World<\/p>\n

There are also environmental issues<\/a>. While lithium brine extraction is less visibly destructive than copper or gold mining, it remains water-intensive. In 2024, a court in Argentina\u2019s Catamarca province suspended<\/a> new mining permits over concerns related to water. Companies now promote direct lithium extraction, a technology touted as less resource-intensive, though it remains unproven at scale.<\/p>\n

Of the three countries, only Chile, the region\u2019s longtime powerhouse, appears to have a backup plan: It is pitching \u201cgreen lithium,\u201d betting that sustainability and traceability can command a premium from carmakers. This strategy could yield a superior product in the global market while shielding local communities somewhat from the boom-and-bust swings of commodity prices, Pamela Goicovich, president of Chile\u2019s International Lithium Chamber, told Rest of World.<\/p>\n

Bolivia holds the world\u2019s largest reserves but, hampered by difficult geology and state controls, has almost no production. Argentina, once billed as the next lithium giant, slipped from fourth to fifth place in global output in 2024, though the government estimates<\/a> exports will reach $11.3 billion by 2032, from less than $700 million in 2024.\u00a0<\/p>\n

For people in the Andes, the question is less about future projections and more about their present reality. Businesses that focused on the mining industry are going back to their original intent. Tourism operators who once found it nearly impossible to book a room \u2014 because they would often be reserved for and by mining workers \u2014 say local guesthouses are now trying to lure visitors drawn to nearby salt flats and high-altitude landscapes by promising availability.<\/p>\n

In Tolar Grande, where the salt flats and mountains are beginning to draw tourists again, residents are painfully aware that the landscape is not what it was before the mining companies swept in. The heavy traffic of mining trucks, for example, has left some dirt roads badly scarred.<\/p>\n

\u201cThe community wants companies to help the town grow as much as they do,\u201d said R\u00edos. \u201cWe want mining to leave something \u2014 at least paved roads. They have to leave something for everything they take.\u201d<\/p>\n

\t\t\t\t\t\"Two<\/p>\n

\t\tTrucks servicing lithium mining companies on the road to the capital city of Salta Province.
\n\t\tAnita Pouchard Serra for Rest of World<\/p>\n","protected":false},"excerpt":{"rendered":"Tolar Grande, a windswept settlement perched at 11,500 feet above sea level in northern Argentina, once received little…\n","protected":false},"author":2,"featured_media":218168,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,56,54,55],"class_list":{"0":"post-218167","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-uk","11":"tag-united-kingdom","12":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/218167","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=218167"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/218167\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/218168"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=218167"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=218167"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=218167"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}