Despite having the world’s largest lithium reserves, Latin America remains stuck in the extractive stage, exporting raw materials instead of developing a domestic EV supply chain.
Miguel Ángel Bravo, founder of Bravo Motors Company, explains that the Lithium Triangle—formed by Argentina, Chile, and Bolivia—faces several challenges:
- Bolivia’s Salar de Uyuni, the world’s largest lithium deposit, has high magnesium contamination, making extraction more expensive.
- Argentina, however, enjoys high lithium concentration with low extraction costs, as brine-based lithium is easier to extract than rock-based lithium, as in China and Australia.
Yet, even with these natural advantages, Latin American nations are failing to capitalize on the value chain.
China’s dominance and Latin America’s vulnerability
China controls 48% of the global lithium market, not just through its own resources but also by acquiring mines abroad.
More critically, China owns nearly 80% of the lithium battery supply chain, while Latin America remains a raw material exporter.
Bravo highlights the risks for Mexico, Brazil, and Argentina, which have the region’s largest automotive industries but are highly exposed to Chinese battery imports.
“China has only 15% of the world’s lithium, but it dominates nearly 80% of the battery market because it controls the entire supply chain,” Bravo explains.
The road to a Latin American EV industry
While Chinese EV manufacturers have expanded into Latin America, local governments are now moving to protect their automotive industries.
Bravo argues that Latin America should prioritise electrifying public transport, taxis, last-mile logistics, and freight rather than focusing on private electric vehicles:
“There are 1.42 billion internal combustion vehicles worldwide. Even if 15–20% of them are replaced this year, the impact remains limited. Public transport, however, operates 90% of the time, making it a more efficient sector for electrification.”
Mexico’s EV ambitions and a local vehicle project
Bravo Motors is developing a new electric vehicle in Mexico, aligning with the electrification goals of President Claudia Sheinbaum.
Unlike low-tech EV models, Bravo’s project focuses on a universal taxi concept, integrating carpooling, logistics, and e-commerce.
“If Latin America doesn’t invest in science and technology, it will continue importing EVs instead of producing its own. We need to follow BYD and Tesla’s example by vertically integrating the value chain.”
With Mexico and the US at odds over trade, the timing couldn’t be better for Latin America to finally leverage its lithium wealth and develop a competitive EV industry.
