The Potential of Lithium: Peruvian Case - SME Annual Meeting 2024

Lithium is a top-quality mineral in the energy market, with growing demand. It has many applications in medical, nuclear, and energy industries. The purpose of this article is to quantify and analyze the economic potential and projected global demand for lithium annually. It aims to determine Peru’s (specifically Puno) positioning in the global context in 2025 and 2030. The article also seeks to identify the main regulatory, environmental, and social challenges to sustainably exploit lithium in Peru. The study employs applied research (mixed approach), descriptive-correlational scope, and observational, crosssectional design. The methodology demonstrates the use of statistical techniques to model and make predictions about this energy-transition metal. Academic sources were reviewed to enable a comparative approach and projection into the future of lithium for development in the mining industry. In the last 10 years, lithium demand has grown, noting a 600% increase in the economy and projected annual growth of +26%. Exponential growth in resources is projected, where econometric, R-multivariable and R-linear models estimate that Peru could supply 1.5% in 2025 and 3% in 2030 of global lithium. Estimated growth of 5–15% in socio-environmental conflicts is projected with the start of lithium exploitation (Peru – Puno). The global potential of lithium demonstrates exponential growth. Lithium reserves in Puno - Peru would rank 13th between 2025 and 2030. It is necessary to establish a clear regulatory framework to avoid excessive increase in socio-environmental conflicts.