News Americas, New York, NY, Tues. July 9, 2024: Argentina is set to significantly expand its lithium production, a crucial mineral for the global green energy transition. Lithium is essential for batteries, and Latin America is a leading producer, second only to Australia.
Veterans of the Malvinas (Falklands) parade past the official box during the 2024 Independence Day Parade on July 9, 2024 in Buenos Aires, Argentina. The Independence Day parade is held again after 5 year due to a suspension during the government of Alberto Fernandez. (Photo by Ricardo Ceppi/Getty Images)
Argentina will open four new lithium mines in the coming months, increasing its annual capacity by around 80%, Bloomberg reports. This expansion will help Argentina catch up to neighboring Chile, the current regional leader in lithium production.
Argentina, Bolivia, and Chile form the “lithium triangle,” containing nearly 60% of the world’s lithium deposits, according to Semafor’s Jeronimo Gonzalez. Despite this, the region, excluding Chile, has been underdeveloped. Investment is growing, particularly from China, with the US also starting to invest more, although it may be lagging behind Beijing by up to 10 years, as noted by El País. Advanced technologies for refining and downstream industries are still predominantly held by wealthy nations and multinational corporations, Chatham House reported.
Argentina’s President Javier Milei hopes that the new investment in lithium extraction will boost the country’s economy, which has been struggling for decades. Milei has passed laws to benefit lithium developers and attract export dollars. He has also shifted Argentina’s foreign policy away from its close relationship with China, instead fostering closer ties with the US. Discussions of “investment opportunities” with tech mogul Elon Musk are reportedly underway, El País noted. However, China continues to expand its lithium projects in Argentina.
Despite the global abundance of lithium, Argentina’s move comes at a time of price declines. In June, lithium carbonate prices in China hit their lowest level since 2021 due to slowing demand for electric vehicles and rising production. This price drop serves as a reminder that green energy markets are also subject to market forces, similar to fossil fuels, as highlighted by a political scientist in Forbes.
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