Uploaded July 2023 | Updated September 2026, 30 minutes ago

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In 2021 China controlled two-thirds of the world’s lithium processing and refining capacity. As a result, the EU imported three-quarters of its lithium from China.

EU will need up to 18-times more lithium by the end of the decade, and almost 60-times more in 2050, compared to today.

Given the change in relations between the US/EU and China, this increased dependence can be seen as a risk for the EU, just as the increased share of imports of gas and oil from Russia became a risk in 2021.

Argentina, Bolivia and Chile – are home to almost two-thirds of the world’s lithium resources. Therefore, the EU also turns towards the source - the ‘Lithium triangle’. Not only the biggest reserves, but also the fact that the EU and Latin America have traditionally been close trading partners. The EU therefore decided to source as many critical raw materials from countries that are geopolitical allies (also called friend-shoring).

The EU stresses a more qualitative approach in Latin America comparing to some other partners: The EU activity in the sector will meet high(er) environmental standards which are not only crucial to protect the environment but also to obtain the support of local communities; and EU companies would aim to base more production-related work locally. This means that the added value is in the country of production. It means that local workforce is better trained. It should therefore result in higher and better local employment.


📺 Watch the first episode of the Latin America chronicles: 'The importance of Latin America': youtu.be/8DXFLOFK0XQ
📺 Watch the second episode of the Latin America chronicles: 'China's influence in Latin America': youtu.be/Q-EKSeXhVqs

📖 Dig deeper into the migration to the EU in our publications:
• EU trade with Latin America and the Caribbean: Overview and figures: https://www.europarl.europa.eu/thinktank/en/document/EPRS_STU(2023)751413
• Strengthening ties: A new agenda for the EU's relations with Latin America and the Caribbean: https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI(2023)749791
• Latin America Outlook 2023: EU-LAC relations at a time of geopolitical upheaval: https://www.europarl.europa.eu/thinktank/en/document/EPRS_IDA(2023)739372

📲 Find all our publications on our EPRS app:
• iOS: http://epyoutube.eu/q57W
• Android: http://epyoutube.eu/q57X


CONTENT:
00:00 Latin America and critical raw materials
02:33 EU and critical raw materials
03:14 EU's offer
04:46 Latin America response
05:41 EU's green transition
07:30 Outro