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Argentina is preparing for a significant leap in the global lithium market with the ambition to become one of the top exporters by 2025. To achieve this, the country needs at least three new projects to start production this year, a goal heavily reliant on the Large Investments Incentives Regime (RIGI), a legal framework designed to attract investments and accelerate development in the mining sector.
The Base Law and RIGI are seen as key elements to unlocking investments in the lithium sector. These regulatory frameworks offer tax benefits and legal guarantees aimed at creating a favourable environment for the development of large-scale mining projects.
In 2023, Argentina’s lithium carbonate production reached 40,000 tonnes. With the commencement of production at Exar's Cauchari Olaroz mine, this figure is expected to rise to 77,000 tonnes. Additionally, Eramine Sudamérica has initiated the production phase at the Centenario Ratones project in Salta, marking a milestone as the first project to use Direct Lithium Extraction (DLE) technology.
By the second half of the year, three additional projects are anticipated to start production: Tres Quebradas in Catamarca, operated by Zinjin; Sal de Oro in Salta, developed by Posco; and Mariana in Salta, managed by Ganfeng. These projects are crucial for reaching the goal of 200,000 tonnes of annual production.
Despite a 38.8% decrease in the value of lithium exports during the first five months of the year, amounting to $227 million, the quantities exported have increased by 55.1%. This rise is attributed to the commencement of production at Cauchari Olaroz. However, the fall in lithium prices has impacted the total export revenues.
The development of Argentina’s lithium sector has significant economic and environmental implications. The adoption of technologies such as Direct Lithium Extraction reflects a commitment to more sustainable practices, aligning with the mission of global communities and entities aiming to democratise access to energy opportunities and promote net-zero emissions energy.
Argentina stands at a crucial crossroads. With a favourable regulatory framework and a series of promising projects, the country has the opportunity to establish itself as a global leader in lithium production. The success of this initiative will depend on the effectiveness of RIGI and the ability of companies to overcome the challenges of the global lithium market.
