European Union, Argentina Sign MoU on Raw Materials

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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Argentina President Alberto Fernandez and European Commission President Ursula Von der Leyen met in Buenos Aires on June 13 to discuss several topics, including strengthening raw material markets between the parties. As a result, the presidents signed a memorandum of understanding (MoU) on sustainable raw materials value chains.

The MoU aims to identify and develop sustainable and innovative value chain projects to generate business opportunities and allow sustainable integration of raw materials and players.

This is part of a trend to secure agreements between the EU and South American countries, as Von der Leyen also met with Chilean authorities to discuss lithium and green projects.

Additionally, through this agreement, the parties want to develop Argentina's sustainable value chains for raw materials through cooperation on skills, capacity building and the promotion "of the most sustainable extraction and transformation practices."

Among the strategic raw materials discussed were lithium, copper, cobalt, rare earths and others. Lithium was the center of the conversation, as Argentina is one of the world's largest lithium producers.

Industrial Info is tracking 55 lithium projects totaling US$13.79 billion in Argentina. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a list of detailed project reports.

Von der Leyen said, "This is a great step forward, and we will both benefit from it. I think it is important to see that, for example on lithium, we will help develop value chains that definitely go beyond extraction. Because we think it is so important that the added value in the processing value chain stays locally and in the region, so here.... Lithium plays a big role because it is essential to power clean technologies. It is basically everywhere: it is in batteries; it is in wind turbines."

Argentina is one of the key players in the lithium industry worldwide. According to the U.S. Geological Survey, Argentina has the second largest lithium resources worldwide, with 20 million tons, only behind Bolivia.

The development of the Argentine lithium industry is attracting international governments and companies as demand for the metal continues to increase with the transition to cleaner technologies and energy.

Fernandez said he sees "the possibility that Europe becomes more actively involved in adding value to lithium production through the production of batteries, in the exploitation of copper and green hydrogen, and in the implementation of gas liquefaction plants."

Under the MoU, the EU and Argentina will have six months to develop a strategic partnership roadmap to identify specific areas of cooperation.

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) 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).