Outlook for the "lithium triangle".
South Korean steel maker POSCO announced in June that it is pulling out of a joint project with Samsung to manufacture lithium battery parts in Chile. POSCO’s exit came despite an earlier agreement giving it guaranteed supplies of lithium at preferential prices for 27 years.
- Some lithium battery factories will be built in Latin America in coming years, but there will be questions over long-term profitability.
- Locating some battery manufacturing in lithium triangle countries may come to be seen as the price to be paid to secure mining rights.
- Large-scale battery production will remain concentrated in major EV assembly facilities in China, North America and Europe.
- Lithium triangle countries will be under ongoing pressure to balance lighter touch regulation with environmental protection.