Argentina Rides the Lithium Wave

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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Argentina continues to push the development of its lithium industry as it exports more lithium, inaugurates new plants, and closes strategic deals.

The South American nation is increasingly attracting more international attention to its lithium sector. The country is benefitting from its vast lithium resources, which are the world's second largest, while the government in Buenos Aires launches efforts to attract international investments by granting fiscal and legal benefits.

The depreciation of lithium prices has affected companies and countries worldwide, following a lower-than-expected sale of electric vehicles. However, the demand for the white metal is projected to continue growing in the next few years due to the transition to cleaner energies.

The current setbacks in the global market, which have been affected by an oversupply, have not deterred Argentina from gaining a growing pace in lithium production, new exploration, and project developments.

As an example of that, earlier in February, Ganfeng Lithium (Xinyu, China) inaugurated the country's newest lithium mine, expanding the nation's processing capacity by 20,000 tons per year. This marked the sixth operational lithium mine in the country.

More milestones were achieved this month, as Eramine, the owner of the Centenario Ratones lithium mine, exported the first shipment of lithium carbonate produced in the province of Salta.

The 40 tons of lithium carbonate cargo is being shipped from the Rosario port after travelling for 1,580 kilometres from the Centenario-Ratones salt flat.

The push for lithium developments is promoted by the national and provincial levels alike throughout Argentina. While the administration of Javier Milei announced the Incentive Regime for Large Investments (RIGI) for mining investments above US$200 million in exchange for fiscal and legal stability, the Argentine provinces are independently closing deals and agreements with companies and nations.

At the national level, companies like Australia's Galan Lithium are trying to subscribe their lithium projects under the RIGI.

Locally, provinces are closing deals to promote their domestic industries. On February 19, the governor of Catamarca met with India's minister of mines, Khanta Rao, to strengthen the exploration of critical minerals, especially lithium. Currently, the Indian companies of Khanji Bidesh India (KABIL) and Greenko (New Delhi) are conducting lithium exploration efforts in the province of Catamarca.

Global interest for Argentina's salt flats seems far from dissipating. Last month, in an interview with Reuters, Rao highlighted that India seeks to boost its mining investment, especially for lithium, in the South American country.

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