The initiatives — constructed on salt lakes nestled within the Andes mountains in South America’s so-called lithium triangle — are a boon for brand spanking new President Javier Milei, who desperately wants extra export {dollars} to carry forex controls which might be stifling Argentina’s crisis-prone economic system.
But for world lithium markets, the additional manufacturing comes at a time when consumers are already effectively equipped, with inventories piling up amid the gloomy outlook for electrical car demand. Spot costs of lithium carbonate in China have slid to the bottom since August 2021.
Regardless of a flurry of prospecting and improvement, solely three operations in Argentina at present export lithium. That’s nonetheless sufficient to have established the nation as a serious producer behind Australia, neighboring Chile and China. Of the three, just one is a newcomer — Minera Exar, which is majority owned by Ganfeng Lithium Group Co.
Now, Argentina is taking a real leap, with 4 new initiatives prepared to start full-scale operations and ramp up annual capability by 79% to the equal of 202,000 metric tons, in keeping with a Bloomberg breakdown of the unreleased authorities knowledge.
The primary of the brand new initiatives shall be Eramet SA and Tsingshan Holding Group Co.’s Centenario Ratones, which is scheduled to carry an inauguration occasion subsequent week, a Mining Division spokesperson confirmed. The others are: Posco Holdings Inc.’s Sal de Oro; Zijin Mining Group Co.’s Tres Quebradas; and Ganfeng’s Mariana.
Whereas the brand new capability gained’t all be used immediately, it nonetheless represents a big overhang in a market through which world manufacturing is estimated by Bloomberg Intelligence to complete 1.4 million tons this yr.
Rio Tinto Group can also be aiming to have a 3,000-ton starter plant prepared by the top of the yr at its Salar del Rincon mission, in keeping with a presentation delivered by Santiago Cicchetti, Rio Tinto’s exterior affairs supervisor in Argentina, at a convention in Buenos Aires this week.
The June 26-27 convention was a hive of exercise attended by high producers, prospectors, expertise suppliers and provinces which have a giant say over if and the way pure sources of their territory get unearthed.
Thus far in Argentina, the lithium business has centered on the provinces of Jujuy, Salta and Catamarca. However La Rioja, simply to the south, is now making a push to tempt prospectors, Walter Gomez, president of provincial mining outfit Emse, mentioned in an interview. La Rioja handed a controversial legislation final yr permitting it to rescind mining acreage from any house owners it deems to be land speculators bored with exploration.
The convention passed off towards the backdrop of much-awaited federal approval for Milei’s sweeping reforms, together with a program of tax, forex and customs advantages for industrial investments that may profit lithium builders.
(By Jonathan Gilbert and James Attwood)