Economist Podcasts Make ore break: Latin America’s commodities
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Aug 17, 2023 Ana Lankes, The Economist's Latin America correspondent, delves into the region's lithium-rich landscape. She highlights how lithium, essential for batteries, signals a potential commodities boom, impacting global markets. The conversation touches on the challenges posed by local protests and regulation in key countries like Chile and Brazil. Additionally, the risks facing Germany's auto giants, particularly Volkswagen, amidst shifting demands are explored. Lankes also connects the booming interest in women's football in England to broader societal changes.
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Lithium Plant Visit
- Ana Lankes visited the Atacama Desert to see lithium production.
- She toured a Chilean SQM lithium plant, the world's largest, and observed the process from brine extraction to lithium carbonate production.
Commodities Boom Factors
- Latin America's potential commodities boom is driven by the green transition, growing global population, and geopolitical tensions.
- The region has vast mineral reserves, including 60% of the world's known lithium, and is the largest net food exporter.
Geopolitical Advantage
- Nearshoring, driven by US-China rivalry, benefits Latin America due to its proximity to demand centers and neutrality.
- The Inflation Reduction Act further supports this by incentivizing sourcing critical minerals from countries with US free trade agreements.