Lithium mining in Argentina. Current diagnosis and future prospects

Lithium is a key metal for the global energy transition, in particular for electromobility and the storage of energy obtained from renewable sources. It grew in importance when it began to be used for the production of batteries for portable electronic equipment and, more recently, when it became an essential input for the manufacture of batteries used in electric vehicles.

Argentina has mineral resources that would allow it to make a key contribution to the growing global demand for the energy transition. At the same time, this would give the country the possibility of obtaining the foreign currencies that it needs for its development. In turn, our country’s sectoral regulatory framework offers important benefits to investment, which is reflected in the large number of projects that, in their various stages, are developed in Argentina.

However, there is a possibility that over time, the recycling of used batteries could cover part of the growing demand for lithium, and in turn, that alternatives to its use emerge in the future.

This report provides an overview of the current state of lithium mining globally. For the analysis, the most commonly used metal extraction methods will be summarised and the main players on both the global supply and demand sides will be identified. Likewise, the evolution of international prices and their impact on the rest of the variables analysed will be presented.

With regard to Argentina, the study will describe the place it occupies in the world lithium market, and the importance of extractive activity for the national economy in terms of production, foreign trade and employment.

Finally, a concise review of the regulatory framework offered by Argentina in relation to that of its neighbours will be made, which will be followed by some brief final reflections, mentioning the possibilities of scaling up the value chain of lithium-ion batteries, in addition to the potential of lithium extractive activity.