China’s Zijin Mining Group considers lithium investment in Argentina
China’s Zijin Mining Group is in talks to build a lithium conversion plant in Argentina, collaborating with Camyen and YPF.
The project aims to produce 50,000 metric tons of cathodes for electric vehicle batteries annually, starting next year.
Argentina sees this investment as an opportunity to develop its domestic industry and avoid the pitfalls of relying solely on raw material exports.
The project also reflects the global competition between China and the United States for control over South America’s lithium reserves.
Argentina has been exploring the idea of requiring some production to remain in the country, but the proposal is currently on hold.
China has been supportive of Argentina’s ambitions, with Chery Inc. planning a $400 million investment in an electric vehicle and battery plant.
In neighboring Chile, Chinese company BYD Co. is also involved in a cathode project.
Despite not being a U.S. free trade partner, Argentina is seeking access to President Joe Biden’s electric vehicle tax credits.
Additionally, Camyen and YPF are collaborating on an exploratory lithium project, while YPF, with Livent Corp.’s assistance, is establishing a small-scale battery cell factory to develop national battery expertise.
This investment by Zijin Mining Group presents a significant opportunity for both China and Argentina.
It allows Argentina to tap into its lithium resources and participate in the global electric vehicle supply chain, while China strengthens its position in the growing electric vehicle market by securing strategic resources.
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This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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