Investments in lithium in Peru are expected to exceed US$1.468 billion in the initial phase

Lithium is emerging as the new focus of mining diversification in Peru. According to Washington López, an economist and metals expert, the development of the Falchani deposit in Puno will require initial investments exceeding US$1.468 billion, a figure that could transform the country into a major player in the global market for this strategic mineral.

“Falchani is one of the most important hard-rock lithium deposits globally, and its first phase alone will generate over 3,000 direct and indirect jobs,” stated López, who highlighted that this project represents “a historic opportunity for Peru to diversify its mining matrix beyond copper and gold.”.

The deposit, developed by Canadian company American Lithium, has measured and indicated reserves exceeding 4.7 million tons of lithium carbonate equivalent (LCE). Unlike the salt flats of Chile and Argentina, Peruvian lithium is found in volcanic rock, which, according to López, “implies lower water consumption, a key factor in contexts of water stress and sustainability.”.

The global context is favorable. The International Energy Agency projects that lithium demand will multiply by 40 by 2040, while BloombergNEF estimates that more than 2.4 million tons of LCE per year will be needed by 2030. However, the market is going through a period of high volatility, with price drops in 2024 and expectations of a new upward cycle starting in 2025.

Despite this panorama, Peru faces pending challenges. “There is still no specific regulatory framework for lithium. Without clear rules, the country risks losing investments to competitors such as Chile, Argentina, or Australia,” warned López.

Another chance

In addition to Falchani, the Quelcaya project in the south of the country could consolidate Peru's presence in the market. If both developments advance, Peru could rank among the top ten lithium producers in the medium term.

“The challenge is to decide whether we will be mere exporters of raw materials or if we will take the leap towards industrialization, integrating ourselves into the battery value chain. That is the real challenge,” concluded López.