Argentina to Receive $4.2 Billion Lithium Investment Over the Next Five Years

Argentina expects to receive $4.2 billion investments in its lithium industry over the next five years, which would help it double the production in 2023 and reach 175,000 tonnes of output in 2025.

Argentina, with its large lithium reserves, has attracted some major companies in the mining industry over the past year, including the world’s second biggest miner Rio Tinto and South Korean steelmaker Posco.

Argentina sits atop the “lithium triangle”, a region it shares with neighbors Bolivia and Chile. The region is thought to contain nearly 56% of the world’s lithium resources.

The investment means, according to Argentinian minister of productive development Kulfas, the South American nation could become the world’s third or fourth biggest lithium producer.

Kulfas said the investment would be crucial to build the necessary infrastructure and improve efficiency. He also underlined the need for sound policies that help attract more investment without neglecting the environment.

Argentina produced 33,000 tonnes of lithium in 2020 and estimates that it will reach 50,000 tonnes of the battery metal this year.

Argentina’s northern provinces are emerging as a hub for greenfield lithium projects, attracting both large and small companies.

The nations’ lithium portfolio includes 23 projects in different stages of development, including the under construction Cauchari-Olaroz mine owned by China’s Ganfeng Lithium and Lithium Americas. The project is expected to become Argentina’s top producer with 40,000 tonnes of lithium carbonate equivalent (LCE) a year, starting in second half of 2022.

There are currently two lithium mines in the country that are in production, operated by Australia’s Orocobre and US mining company Livent Corp, which have supply ties with Toyota and BMW respectively.

Rio Tinto also prepares to start operations in Argentina as it completed in March the acquisition of the Rincon project in Salta, which holds reserves of almost 2 million tonnes of contained LCE, sufficient for a 40 year mine life.

Posco also pledged to invest $4 billion in a project at a salt flat called Salar del Hombre Muerto, located on the border between the Salta and Catamarca provinces.

Australia’s Lake Resources is another company present in the area, with the Kachi lithium project. It is expected to initially produce 50,000 tonnes per annum from 2024. Ford has recently made a bet on the project to buy 25,000 tonnes of the battery metal annually.

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Do you need to access special insights on this matter?

Start your 7-day free trial  and become a member today

Subscribe to Top Insights Today

Subscribe to Executive Newsletter Top Insights Today

The Executive Newsletter -Top Insights Today- puts global business events in perspective through special insights

Join the ranks of global executives and subscribe to Top Insights Today

Top Insights Today covers insights on energy, clean-tech, oil&gas, mining, rare earths, defense, aviation, infrastructure, manufacturing, electrical vehicles, big-tech, finance and politics of business

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Ambiguous EU Measures Push Traders Away from Russian Oil

Traders will continue to avoid Russian oil deals next month due to ambiguous wording of the EU sanctions. Although the EU has not sanctioned Russian energy so far, the ambiguity of existing measures leave the traders wary of getting into legal pitfalls against the bloc. Traders believe wording seems aimed at restricting trade in Russian commodities. 

China’s First Futures Law Could be Implemented in 2022

According to a China Futures Association statement, China Securities Regulatory Commission will support futures companies in their development and allow qualified firms to be listed. The statement referred to an industry conference, where the regulatory body told it would support futures companies to widen and diversify their financing channels in order to compete with foreign rivals.  

German Bundestag Passes New Gas Storage Law

German parliament passed a bill, which will kick off on May 1, that guarantees minimum gas storage levels. Germany’s underground facilities account for a quarter of EU’s total gas storage capacity. The law will try to minimize the exposure of Germany to the size and speed of gas flows out of Russia for the next three years. It sets out minimum capacity requirements before the next heating season begins in October. 

Stay informed

error: This content is protected !!