Jul 26.07.2019, XNUMX - The Swedish government also warned of China's growing dominance in the ore market.
Puno in Peru on Lake Titicaca. 2018 has been discovered huge lithium reserves.
Sweden has Peru and other countries with large lithium reserves in South America in view of a global race in which the industrialized nations want to ensure the supply of batteries for electric vehicles.
Deputy Foreign Minister Johansson, of the Scandinavian country, who visited Peru last month, said in an interview that Swedish companies are interested in lithium and are part of the metal supply chain in the region.
In anticipation of future demand for electric cars, various governments and car manufacturers are striving to form alliances with countries such as Chile, Bolivia and Argentina, the so-called "lithium triangle" in South America.
Peru, the second largest copper producer in the world, also expects to enter the market with its own lithium reserves. Last year, Canadian Plateau Energy Metals announced the discovery of 2,5 million tons of high grade mineral resources in southern Andes, which could become the largest lithium mine in the world.
“In Sweden, in Germany and in many other countries, we will now receive all the minerals that are necessary for the future of electrification. This is not only lithium, but also copper, which is very important in Peru, ”said Johansson.
The official added that given China's dominance in the rare minerals market, it is crucial to ensure a broad supply in different parts of the world.
China manufactures nearly two-thirds of the world's lithium batteries and controls most lithium processing companies worldwide. This is based on data from Benchmark Minerals Intelligence tracking ore prices.
In the region, the Chinese Tianqi Lithium Corp. significantly involved in SQM. The Chinese consortium TBEA Group-Baocheng and Bolivia from Xinjiang signed a preliminary agreement this year to found a company that will industrialize lithium reserves.
Johansson said China's position in the market could pose a risk. "If China is able to control a market, that will be a problem." “If someone controls a lot, it is not good for prices and not good for the competition. Johansson sees another problem in the security of supply ”.
The Swedish automotive industry includes Volvo cars controlled by Chinese auto giant Geely and truck manufacturers AB Volvo and Scania. Europe has taken steps to compete with its competitors in the field of electric car batteries: The Swedish company Northvolt will begin building the largest lithium-ion battery plant on the old continent in August.
According to Johansson, Swedish companies were also interested in contributing to the development of sustainable mining in the region, a key component of the electric vehicle industry.
Institute for Rare Eden and Metals Arndt Uhlendorff - July 2019
