How to Address the Social Impact of Lithium Extraction to Achieve a Fairer Energy Transition

Environmentalists and researchers agree that the extraction of this metal in the Americas must respect the rights of local communities. To achieve this, it is necessary to address the vulnerability of this region, ensure greater transparency of information related to projects, and develop processes of Free, Prior, and Informed Consultation (FPIC).

Lithium extraction is seen as a key activity to accelerate the energy transition and combat climate change. Batteries made from this metal are essential to transforming the transportation sector, one of the main emitters of greenhouse gases due to fossil fuel combustion.

However, researchers and environmental leaders warn that this mining industry should not repeat the mistakes of the mega-mining practices for other metals in Argentina. A fairer lithium mining industry is required.

'The mining exploitation of lithium needs to learn from what happened with gold mining in Argentina. That history shows that a plundering, colonialist attitude that ignores local communities only generates conflict, which benefits no one,' says Romina Picolotti, co-founder of the Center for Human Rights and the Environment (CEDHA), who won the Sofía Award in 2006 for her defense of human rights and sustainable development promotion. (https://fundacioncedha.org/para-ser-habitable-el-mundo-que-viene-debe-ser-sin-combustibles-fosiles/)

For their part, researchers from the Institute for Non-Conventional Energy Research (Inenco), part of Conicet and the National University of Salta, argue that in order to move toward a fair energy transition, the lithium industry must address three urgent issues:

• Addressing the vulnerability of local communities.

• Ensuring greater transparency of information related to projects.

• Developing Free, Prior, and Informed Consultation processes in accordance with national and international regulations.

Free, Prior, and Informed Consultation

Regarding the last point, the authors refer to the case of the Free, Prior, and Informed Consultation (FPIC) held in October 2021 in Catamarca, as part of the process for the installation of a lithium extraction project in the Salar del Hombre Muerto. They concluded that this consultation 'was neither fair nor transparent.' (https://www.sciencedirect.com/science/article/abs/pii/S2214790X22000983#bbib0005)

According to the analysis, the government did not provide enough information about the project to local communities, nor were they given sufficient time to analyze the information; furthermore, the public hearing was held at a time when many people from the local communities could not attend.

Argentina recognizes indigenous rights in its 1994 Constitution and through ILO Convention 169 (2000), the United Nations Declaration on the Rights of Indigenous Peoples (2007), and the Escazú Agreement (2018).

These regulations state that governments must respect indigenous territories and resource management, and obtain FPIC before developing programs, projects, or laws that could affect them. However, these guidelines are often not followed. In several provinces, the consultation process is carried out through a Public Hearing as part of the Environmental Impact Assessment (EIA) process.

Representatives of the Foundation for the Environment and Natural Resources (FARN) also found the consultation process lacking in lithium projects in Jujuy. 'Community members described that the participation process and the relationship with the companies wanting to extract lithium was more of a one-way communication than a two-way process in which both sides could freely express their opinions to reach a mutual understanding,' the report states. (https://farn.org.ar/wp-content/uploads/2019/05/DOC_LITHIUM_ENGLISH-1.pdf)

To guarantee true FPIC, FARN recommends adapting the EIA to international standards for citizen participation.

Ensuring Greater Transparency of Information

FARN's report also warns that the private sector should act with transparency, disclose all relevant information in a timely manner, and comply with environmental, social, and corporate governance (ESG) standards.

Meanwhile, Laura Vera, a researcher at the Research and Development Center for Advanced Materials and Energy Storage in Jujuy (CIDMEJu), states that the biggest issue is the huge cultural clash with local communities. 'There is a huge lack of information about what exploiting a salt flat involves. But, on the other hand, there is also a lack of empathy with the thinking and way of life of local communities,' she says.

She adds: 'For them, resources are sacred—water, land, and their crops are sacred. They are deeply rooted in these beliefs and this place, so you can’t just suddenly set up an industry without respecting that. Dialogue is needed to help them understand that people won’t run out of water just because the salt flat is being exploited.'

The researcher states that if the exploitation is controlled, there is no risk of affecting the water. 'This is also where the government should be involved, because that control cannot be left to just one company; there must be an external agent,' she points out.

Another study by Inenco (https://www.sciencedirect.com/science/article/pii/S0301420722007310) examined how scientists, the government, companies, and the media approach socio-environmental issues through their respective documents.

The analysis highlights 'notable disparities.' Scientific articles and news reports cover a broad range of issues, including concerns about water resources. In contrast, corporate documents tend to focus on economic factors, while government reports focus more on global markets, employment opportunities, and technical advances.

'Companies tend to interact with local communities mainly to calm their concerns about freshwater issues through educational programs and guided tours, but they also make it clear that they do not consider brine to be water,' the study states.

It adds: 'Powerful economic and geopolitical interests are driving the search for materials and technologies that could facilitate the elusive energy transition to a decarbonized society. Additional efforts are needed to ensure that this transition, as desirable as it may be on a global scale, does not impose an additional burden on local communities and territories, which often aren’t on the same page as companies and governments.'

Addressing the Vulnerability of Local Communities

Communities living in the lithium triangle face a vulnerable situation, but they also consider these areas sacred. In some cases, they rely on what the salt flats offer them. Being in very arid regions, they are especially dependent on water resources.

The message from companies and states is that with the boost from this industry, there will be distributive justice—for example, because these projects will bring jobs to the region or improve the basic infrastructure, such as schools, healthcare institutions, etc.

However, the communities themselves feel that this industry sometimes worsens the situation. For example, it leads to the displacement of communities and increases inequality.

On this point, Picolotti believes that the private sector and states must learn from past experiences in mining. 'They need to create other schemes to ensure social and environmental justice. They must help create jobs in the area, minimize impacts by incorporating the best available technologies, form dialogue tables, and delineate the territories of indigenous peoples,' she lists.

She then clarifies: 'Lithium mining is a lower-impact mining compared to gold mining. And it also plays a very important role in the climate crisis. Trust must be built. There is a great deal of distrust between the private sector, the public sector, and communities today. The only way to build trust is by working together, with transparency, and with the truth on the table; without ideological positions, because science is infallible.'