Energy Advisor

Gal Luft, co-director of the Institute for the Analysis of Global Security in Washington: “In the early days of the oil industry, Azerbaijan was the world’s biggest petroleum producer. But as demand for automotive fuel spiked, the country lost its hegemony to other producers, mainly in the Middle East. Chile is poised to meet a similar fate when it comes to its lithium. The country has already lost its number-one producer status to Australia and it is expected to slide even lower on the producers list as new projects are coming online in China, Argentina and elsewhere. The Chilean lithium industry scored a lot of headlines thanks to its role in the global green energy transition, but in reality, it is not a big player in Chile’s economy, and it is not expected to ever become one. Lithium carbonate makes up barely 1 percent of Chile’s export revenues. The industry faces many detractors and challenges. Environmental groups and the Indigenous population are becoming increasingly agitated by the environmental impact of lithium production. The industry is increasingly being viewed as…”