The indivisibility of resources

The nexus between water, energy, food, and ecosystems (the WEFE Nexus framework) provides an effective analytical lens for understanding the dynamics of development in Latin America, where a long-standing dependence on natural resources now intersects with the accelerating global energy transition. In this scenario, the interrelationships are not linear: security in one sector can lead to vulnerability in another. In South America, these dynamics are characterized by a model in which water is essential for hydroelectric power generation and irrigation, while energy is necessary for water extraction and distribution. Factors such as the expansion of intensive agriculture, biofuel production, and climate change are increasing pressure on these sectors.

It is in this context that the expansion of the critical minerals sector introduces further complexity and pressure on fragile regions. Lithium and copper mining in the “Lithium Triangle” is propelling Chile and Argentina to the forefront of the global energy transition, turning their resources into national security assets for major powers. This abundance offers a unique opportunity to attract massive international investment and diversify global supply chains. At the same time, intense geo-economic competition raises significant environmental concerns, particularly regarding high water consumption in already fragile ecosystems.

The landscape of critical minerals in Argentina and Chile 

The “Lithium Triangle” refers to the Andean region between Chile and Argentina, which holds more than half of the world’s lithium reserves, dissolved in vast underground brine deposits. The heart of the region’s production is concentrated in the strategic salt flat of Salar de Atacama in Chile and the salt flats of the provinces of Jujuy, Salta, and Catamarca in Argentina. Lithium mining in the salares, along with Chile’s large copper industry, constitutes a highly water-intensive sector operating in areas affected by chronic water scarcity. In these fragile environments, the evaporation of vast quantities of brine and the consumption of fresh water are associated with cascading impacts that can affect the food security of local populations and the very stability of mining operations.

To prevent the depletion of local aquifers and conflicts with local communities, the mining industry is increasingly turning to desalinated seawater to power its facilities, while also tackling the complex engineering challenge of pumping it thousands of meters uphill to the mines.

At the same time, innovation is focused on recycling internal resources, and many projects now involve water reinjection: Albemarle’s TED project in Chile, for example, involves direct lithium extraction (DLE) and the subsequent reinjection of depleted brine into the subsurface, doubling production without affecting the local water balance. At the same time, desalination itself could become a strategic source of raw materials thanks to the principles of the circular economy. In fact, the separation process produces large quantities of concentrated brine, a byproduct traditionally regarded as a pollutant harmful to marine ecosystems. However, emerging technologies are seeking to extract valuable elements such as lithium, magnesium, and potassium from this waste, potentially transforming desalination plants into full-fledged chemical mines with a low environmental impact.

Finally, there is a mutual technological dependence. Modern desalination plants—especially those powered by renewable energy sources to reduce their carbon footprint—require large quantities of critical minerals, such as copper and nickel, to withstand marine corrosion, or rare earth elements for the motors of high-pressure pumps. Consequently, shortages or price increases in metals could directly affect the cost of desalinated water for industrial use, showing that energy security and water security are now two sides of the same coin.

This dual aspect highlights the ambivalent nature of desalination: while it offers significant opportunities in terms of water supply and the recovery of raw materials, it also raises new challenges concerning energy consumption, dependence on mineral resources, and environmental impacts. It is precisely because of this complexity that technology takes on strategic importance, as it is not a simple or one-size-fits-all solution, but a multifaceted tool whose effectiveness depends on how it is integrated into the system.

Desalination, like advanced recycling, is emerging as a key strategic asset for mitigating water scarcity; however, their true long-term effectiveness cannot be assessed without taking a “big-picture view” that accounts for their high energy intensity and their impact on the overall hydrogeological balance—factors that are essential prerequisites for the very sustainability of economic development.

The Chilean context: water balances in the Salar de Atacama 

The Salar de Atacama is home to the industry’s major players: the state-owned company Codelco, SQM (Sociedad Química y Minera de Chile)—in December 2023, the two companies signed a strategic partnership agreement under state supervision—and the US-based company Albemarle. In December 2023, the Chilean government announced a public-private partnership agreement between Codelco and SQM, aimed at improving operational sustainability and protecting the watershed.

This concern is supported by scientific data. The UNU-INWEH report shows that lithium extraction leads to the evaporation of large quantities of brine, altering the hydrostatic pressure of underground aquifers and potentially causing freshwater from surrounding areas to migrate toward saline zones. This can affect the availability of water for local agriculture and the integrity of the Andean lagoons.

Research shows that producing one ton of lithium requires the evaporation of millions of liters of mineral brine, which disrupts the immediate water cycle. Reports on the water situation estimate that approximately 230 million liters of water are pumped daily throughout the entire watershed, a phenomenon associated with the displacement and salinization of adjacent freshwater aquifers. At the local level, there have been reports of falling water levels in the Salar basin and the drying up of high-altitude wet grasslands. The indigenous association, the Council of the Atacameño Peoples, which represents the nearby villages of Peine, Socaire, Toconao, and San Pedro de Atacama, has expressed concern about the exploitation of the basin, arguing that more water is being extracted than naturally flows into it, and opposing the opening of new facilities near Laguna Tebenquiche, which is protected as a Nature Sanctuary.

Furthermore, industry analyses indicate that the Codelco project will also depend on overcoming institutional bottlenecks related to the approval processes for water projects. These uncertainties regarding the management of shared watersheds are affecting investment, making water stewardship the key economic and political factor in the National Lithium Strategy through 2026. This interplay also has legal implications. The recognition of environmental personhood and the granting of legal rights to rivers or ecosystems in neighboring countries such as Ecuador and Colombia reflect a shift in attitudes and regulations: water is increasingly viewed as an entity whose right to exist must be balanced against industrial needs.

The Argentine context: local dynamics and regulatory reform 

In Argentina, at the Catamarca and Salinas Grandes sites, local and indigenous communities have expressed concerns about lithium mining (the Tres Quebradas and Jujuy projects), pointing out the need for in-depth hydrogeological studies to prevent the risk of water shortages resulting from brine pumping. The tensions that have emerged since 2023 highlight the complexities of top-down governance models. USGS data confirm a structural issue: the decentralization of mining oversight to the provincial authorities (Jujuy, Salta, Catamarca) hinders the integrated management of the WEFE nexus, as the lack of uniform water standards increases operational risk and the vulnerability of transboundary basins.

In April 2026, the Argentine Congress passed an amendment to the Glacier Law (Law 27,804) to encourage investment in the Andes. The regulation introduces stewardship contingent upon the “actual water function” as scientifically verified, entrusting its implementation to the formal identification decrees issued by provincial authorities. Compared to Chile’s centralized model (with national oversight), this decentralized approach offers immediate flexibility in obtaining licenses from pro-mining jurisdictions, but exposes investments to regulatory fragmentation and litigation.

The reform stipulates that the failure of the national body (IANIGLA) to issue a ruling does not invalidate provincial environmental permits. For this reason, the amendment is being challenged in federal courts by opposition parties and environmental organizations (starting with the legal action filed in La Pampa), which are invoking the principle of non-regression and the Escazú Treaty. With the start of the provincial regulatory transition (6-12 months), uncertainties remain regarding the outcome of the appeals.

Meanwhile, experts are drawing attention to the management of high-altitude regions, where glaciers and the periglacial environment contribute more than 50 percent of river flow as natural water regulators in the event of severe drought. The new framework requires careful impact assessments in permafrost areas to prevent acid drainage and ensure the sustainability of local water supplies, thereby avoiding complex legal disputes.

On April 14, 2026, Chile and Argentina agreed to resume the meetings of the Administrative Commission of the 1997 Treaty on Mining Integration and Complementarity. The government led by Chilean President José Antonio Kast has confirmed its intention to formally resume these sessions on July 7 in Buenos Aires, with the aim of facilitating logistics, foreign trade, and investment through the Specific Additional Protocols. The 1997 Treaty promotes the development of mining projects in the high Andes through a cross-border legal framework that applies harmonized standards for the exploitation of shared deposits and the optimization of logistical synergies. The initiative is being closely monitored because the projects included in its scope—such as the Distrito Vicuña gold and copper complex (Lundin/BHP) between San Juan and Atacama—overlap with shared glacial bodies, posing coordination challenges for environmental assessments, which are currently conducted separately in accordance with each country’s specific administrative standards. 

Preventive measures and de-risking strategies for private partners

For private-sector partners, these trends suggest that it would be advisable to adopt preventive best practices that go beyond mere corporate social responsibility. A recent theoretical and practical study introduces the concept of “epistemic justice,” highlighting the practical value of integrating companies’ quantitative hydrogeological models with the historical and empirical evidence held by local communities. These communities have a qualitative understanding of water cycles that can effectively complement the technical data from sensors.

Furthermore, in Chile, the guidelines for the 2025–2026 period establish the implementation of jointly managed real-time water monitoring systems as the benchmark standard for de-risking, where data on water resources are accessible and verifiable by businesses, the government, and citizens alike. Ensuring transparency regarding water data is essential for financial and operational de-risking, as confirmed by the conclusions of the IDS Working Paper and the 2026 reports.

Through collaborative governance that views water as a shared and finite resource within the WEFE nexus, companies will be able to strengthen their license to operate, ensuring that the energy transition is not only technically effective in reducing emissions but also socially accepted and environmentally legitimate in the regions affected by extractive activities.

Integrated management of Andean watersheds 

Ultimately, the shift from models of absolute, centralized stewardship to flexible, localized management systems—evident both in Chile’s strategic centralization and in Argentina’s recent provincial fragmentation—is helping to redefine the nature of resource sovereignty in southern South America. The real challenge of the WEFE nexus in this macro region does not lie in a dichotomous choice between ecological conservation and industrial development, but rather in the institutional capacity to manage the physical and systemic indivisibility of the Andean watersheds. As scientific data shows, water, by its very nature, does not respect the boundaries of mining concessions or the jurisdictions of individual provinces.

Consequently, the long-term success of private investment in the clean energy sector and the social stability of local communities will depend on the recognition that every sector-specific initiative has an impact on the entire system. Only by moving beyond traditional operational models and recognizing the indivisibility of resources as a core principle of governance will it be possible to transform the potential structural trade-offs of the Nexus into virtuous synergies. Combining the technological excellence of real-time monitoring with participatory transparency and input from local communities thus becomes a key strategy for ensuring operational certainty for the company and environmental legitimacy in the regions.