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Released September 29, 2023 | SUGAR LAND
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Researched by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Automaker Stellantis (NYSE:STLA) (Hoofddorf, Netherlands) recently invested US$90 million worth of Argentine pesos to purchase 19.9% of Argentina Litio y Energia S.A. (ALE) from Argentina Lithium and Energy. Stellantis hopes to expand its supply of the metal--a key component of electric vehicle (EV) batteries--by developing projects in Argentina.
Following this transaction, Argentina Lithium will retain the remaining 80.1% of shares of its subsidiary in the South American country.
Stellantis and Argentina Lithium also have agreed to an offtake deal, in which the automaker will buy 15,000 tonnes per year of lithium produced by ALE for seven years. The agreement can be extended following the completion of the initial term.
"We are delighted to have Stellantis as a partner in the future development of our lithium projects in Argentina," said Nikolaos Cacos, the chief executive officer of Argentina Lithium, in a press release. "We look forward to a strong and successful relationship with Stellantis, and we are committed to delivering a sustainable lithium product that will contribute to the electrification of transportation and the protection of our atmosphere."
Argentina Lithium has four projects at different exploration stages across Argentina. Three of them--Incahuasi, Antofalla and Rincon--are wholly owned by the company, while the company has the option to acquire 100% of the interest in its Pocitos asset.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Plant Database can read detailed reports for the Incahuasi, Antofalla and Rincon mines.
Argentina's lithium industry is developing, with three projects already at the production phase and 35 others in construction, feasibility and exploration phases. Nevertheless, the South American country aims to significantly boost its lithium production in the following years by ushering in international investments in its industry.
Industrial Info is tracking more than US$16 billion worth of lithium-mining projects across Argentina. Subscribers can click here for a list of detailed project reports and click here for a list of related plant profiles.
According to a presentation by the mining ministry in August, Argentina aims to export 200,000 tons of lithium over the next few years. Its industry has been gaining further attention as its neighbors, Chile and Bolivia, have nationalized their lithium sectors, while Argentina has maintained a different approach.
However, the lithium industry's development will be a key point in the next presidential elections, scheduled for October 22. The sector could offer Argentina much-needed reserves amid a depletion of foreign currency and high inflation. Though, keeping a stable legal framework will be crucial to attract the investments required to develop the sector.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Following this transaction, Argentina Lithium will retain the remaining 80.1% of shares of its subsidiary in the South American country.
Stellantis and Argentina Lithium also have agreed to an offtake deal, in which the automaker will buy 15,000 tonnes per year of lithium produced by ALE for seven years. The agreement can be extended following the completion of the initial term.
"We are delighted to have Stellantis as a partner in the future development of our lithium projects in Argentina," said Nikolaos Cacos, the chief executive officer of Argentina Lithium, in a press release. "We look forward to a strong and successful relationship with Stellantis, and we are committed to delivering a sustainable lithium product that will contribute to the electrification of transportation and the protection of our atmosphere."
Argentina Lithium has four projects at different exploration stages across Argentina. Three of them--Incahuasi, Antofalla and Rincon--are wholly owned by the company, while the company has the option to acquire 100% of the interest in its Pocitos asset.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Plant Database can read detailed reports for the Incahuasi, Antofalla and Rincon mines.
Argentina's lithium industry is developing, with three projects already at the production phase and 35 others in construction, feasibility and exploration phases. Nevertheless, the South American country aims to significantly boost its lithium production in the following years by ushering in international investments in its industry.
Industrial Info is tracking more than US$16 billion worth of lithium-mining projects across Argentina. Subscribers can click here for a list of detailed project reports and click here for a list of related plant profiles.
According to a presentation by the mining ministry in August, Argentina aims to export 200,000 tons of lithium over the next few years. Its industry has been gaining further attention as its neighbors, Chile and Bolivia, have nationalized their lithium sectors, while Argentina has maintained a different approach.
However, the lithium industry's development will be a key point in the next presidential elections, scheduled for October 22. The sector could offer Argentina much-needed reserves amid a depletion of foreign currency and high inflation. Though, keeping a stable legal framework will be crucial to attract the investments required to develop the sector.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
