As of September 2023, Argentina has two active lithium mines. Livent operates the Fénix mine in the province of Salta, while FMC Lithium operates the Hombre Muerto mine in the province of Catamarca. According to the Argentine Chamber of Mining Companies (CAMAR), Argentina has a vast lithium resource potential, and there are 14 lithium projects under construction or in the advanced exploration stage.
Argentina is expected to become one of the world’s leading lithium producers once these projects become operational. Argentina already has the largest lithium project pipeline in the world, with over 50 projects in various stages of development. Argentina’s lithium rush is being fuelled by rising demand for lithium-ion batteries, which are used in electric vehicles (EV’s) and other renewable energy technology. Argentina, with its enormous lithium deposits and low production costs, is ideally positioned to supply this demand.
India-Argentina Lithium Exploration
KABIL (Khanij Bidesh India Ltd), is in advanced discussions since June 2023 to purchase lithium blocks in Argentina. The Indian government is expected to sign a Memorandum of Understanding (MoU) on this soon.
As reported earlier, KABIL, a government-owned partnership focused on exploring minerals abroad, is close to finalizing a deal to acquire lithium reserves in Argentina.
The interest in this venture started to take shape in December 2022 when KABIL representatives, along with Indian Ambassador Dinesh Bhatia, met with Catamarca’s governor, Raúl Jalil. During the meeting, they expressed their desire not only to invest in lithium resources in Catamarca but also in gold and copper mining.
Additionally, India is in early-stage talks with the Chilean government about securing lithium reserves, although these discussions are still in their initial phases, according to reports.
Lithium in Argentina
According to Mining Secretariat data, Argentine lithium exports increased by 235% in 2022 compared to the previous year, totalling about US$696 million as shown in the infographic.
Based on the existing project pipeline, Argentina’s current production of 40,000 mt of lithium carbonate might triple over the next year, or it could exceed forecasts if direct lithium extraction technologies are successfully adopted and infrastructure obstacles are removed.
According to the ministry’s portfolio of projects, in the first quarter of next year, four new projects, including Tres Quebradas from the Zijin company in Catamarca, Centenario Ratones from Eramine in Salta, Sal de Oro from Posco in Salta and Catamarca, and Mariana from China’s Ganfeng in Salta, will begin operations.
It is crucial to emphasise that the construction of new lithium mines in Argentina comes with difficulties, including environmental concerns, water scarcity, and community hostility. Argentina’s government is committed to developing the country’s lithium sector in a responsible and sustainable manner. To preserve the environment and local populations, the government has enacted a number of regulations. The government is also investing in infrastructure to help the lithium business grow.