Lithium: Argentina will be the world’s largest producer, with 12 projects underway

The announcement that lithium batteries will start to be manufactured this year, a project driven by YPF, reawakened the ‘white gold’ boom in Argentina.

The country is on its way to becoming a world power in primary production; according to experts, with the 12 most advanced projects, Argentina will be the largest lithium producer in the world.

Today there are two lithium-producing projects in Argentina. Another eight are under construction and exploration, while at least five more are expected to enter their final stage next year.

With the 12 most advanced projects, Argentine lithium exports could increase more than 2,000 times in value.

During an event organized by LLYC with the participation of industry leaders under the slogan ‘Let’s talk about Argentine mining’, Luciano Berenstein -executive director of the Chamber of Mining Entrepreneurs- explained the importance of lithium in the country.

Today, said the executive, Argentina is the fourth largest lithium producer in the world and the second country in lithium reserves worldwide. But “we already have 12 projects that would make Argentina the world’s leading lithium producer, with a production of more than 300 thousand tons of LCE (lithium carbonate).

Among the most important projects referred to by the executive, in different stages of development, are: Sales de Jujuy and Fenix (in expansion), Olaroz, Caucharí Olaroz, Centenario-Ratones, Salar del Rincón, Sal de Vida, Tres Quebradas, Pastos grandes and Sal de oro.

The provinces of Salta, Jujuy, and Catamarca are the ones with these projects that exceed investments of more than US$5 billion in the short term.

The growth projection of the lithium business in the country is based on the real forecasts of the projects in progress and on the evolution of the demand, which is constantly growing.

On the one hand, the electric vehicle market (with batteries where lithium is essential, a market that represents more than 70% of the demand for the mineral) is today above 10 million of world stock but will reach 66 million in 2025 and 137 million in 2030.

On the other hand, Berenstein explained that Argentine mining would play a fundamental role in reducing carbon emissions by contributing lithium and another key mineral: copper.

“As countries intensify their climate ambitions, clean energy technologies will become the fastest growing demand segment for most minerals,” said the executive. “Total copper demand will increase 3-fold in 2040 vs. 2020,” he noted.

Daniel Schteingart, Director of CEP XXI and Head of the Executing Unit “Argentina Productive 2030” of the National Ministry of Productive Development, also participated in the debate among the sector representatives.

The official added that “80% of the sales of large mining companies in operation remain in the country” and highlighted this industry’s contribution as a foreign currency source.

Last year, mining exports reached almost US$3.3 billion, with a surplus balance of more than US$3 billion, which makes it a fundamental net contributor of dollars, concluded the event.

MAIN MINERALS IN ARGENTINA

GOLD:

Argentina is among the 20 leading producers worldwide. It has two of the 25 largest gold mines in the world: Veladero (operated by Barrick – Shandong Gold) and Cerro Negro (Newmont). Both with projects to extend their useful life.

COPPER:

12,000 jobs in construction and 4,500 in mine would generate the most important copper projects: Taca Taca, El Pachón, Los Azules, Agua Rica, and Josemaría.

SILVER:

If Navidad and El Quevar are added to Chinchillas and Cerro Moro in the medium term, the country could reach a production of more than 1,400 tons per year.

With information from El Cronista