Canadian and Chinese companies partner on Argentina Lithium project

Ganfeng Lithium of China has joined forces with Lithium Americas of Canada to cooperate in opening a lithium mine in Argentina.

Lithium is a key component in modern batteries.[File photo: VCG]

The Cauchari-Olaroz project will see the chemical extracted from brine deposits - so-called 'brine mining.'

Lithium is a key component of modern batteries, which are in increasing demand worldwide thanks to the growing number of smartphones and tablets being sold.

Not only that, but the recent rapid sales growth of electric vehicles has also seen demand for batteries soar.

It's not just the need for battery components that's rising - there's also growing global demand for places to build them.

With that in mind, one of the world's leading battery firms, Contemporary Amperex Technology of China, recently choose Germany to be the location of its first European factory.

Previously, it had been reported that the firm was considering three countries to host the facility.

The company already has plans in its home market to drastically increase its production capacity of batteries in order to meet demand from manufacturers.

It is expected that the German factory will serve the needs of local manufacturers.