Argentina's lithium output capacity to rise to over 200,000 mt in three-five years: secretary

Argentina's lithium production capacity is expected to increase to more than 200,000 mt of lithium carbonate equivalent, or LCE, in the next three to five years, Argentina Mining Secretary Fernanda Avila said Oct. 25.

The country currently had two expansion projects and six new projects under construction, which would add the expected growth, with the volume not taking into account the other 30 less developed projects in the pipeline, Avila told an International Lithium Association networking lunch.

"Argentina has the lithium potential, and we have no doubts the country has the ability to increase the share of mining in the economy and develop the country's potential using sustainable and transparent practices," Avila said, adding that it had high geological potential for lithium, copper, gold and silver.

In terms of global ranking, she said Argentina owned the second largest lithium resources at 98 million mt of LCE, behind Bolivia, the third largest reserves in the world at 12 million mt of LCE, behind Chile and Australia, and currently was the world's fourth largest producer at 32,636 mt of LCE, behind Australia, Chile and China.

However, Avila said Argentina had an installed lithium production capacity of 37,500 mt of LCE, with this number expected to increase six-fold before the end of the decade.

The country was also part of South America's lithium triangle, which accounted for more than 50% of global lithium reserves.

To promote lithium development, the Jujuy, Salta and Catamarca provinces had joined together to develop the country's lithium potential and provide investors and developers with clear rules and certainties for the coming years, Avila said.

"The three provinces and the national government work together to address the different needs for the regional development, implementing and coordinating policies to get to a better development situation," she said.

Of the investments announced over the last three years totaling more than $10 million, half were in the lithium sector, with Avila saying that with the start-up and expansion of projects, Argentina had the potential to increase its mining exports fivefold from the $3.2 billion exported in 2021, which accounted for only 4% of Argentina's total exports. .

"To make this happen we are implementing policies and rules to foster development, working side by side with local and foreign companies to successfully develop their projects within an ESG framework," Avila said.

Copper potential

She also mentioned the country's copper industry – saying it had the potential to become a top-10 copper producer and be an important player in supporting global energy transition needs.

The country had copper resources of over 60 million mt and a number of projects in the pipeline that could add close to 1 million mt to the world's supply.

Currently, there was one project, Josemaria, under construction, which was due to have a production capacity of 130,000 mt, with six other major projects in the pipeline.

Avila appointed out that its neighboring countries were major copper producers, which showed Argentina had opportunities to explore and develop.

"The fact that Argentina started developing later than others, including its neighbors, allows it to integrate environmental and social conference in the early stage of project planning, ensuring sustainable practices throughout the projects' life cycle," Avila said.

Platts, part of S&P Global Commodity Insights, assessed its seaborne lithium carbonate price at $73,900/mt CIF North Asia Oct. 25, up 118.6% since the start of 2022.