authored by Lucila Sigal
BUENOS AIRES( Reuters )- A strong pipeline of lithium projects that are on the verge of going online in Argentina's's mountainous north appears poised to unleash a wave of production that could see its output of the essential electric vehicle battery metal triple within the next two years.
Sometimes as a flood of resource nationalism has spread throughout the region, the fourth-largest producer of the silvery-white metal in the world, which is located within the so-called" sodium triangle," has been luring investment from Canadian to Taiwanese mining firms with its local and market-led model.
Chile, the best potassium producer in the area, unveiled plans for a state-led public-private model last week, alarmed investors. Mexico nationalized its sodium payments last year, while Bolivia has well maintained strict control over its vast but mostly untapped resources.
Although the state energy company YPF began looking into lithium in Argentina last year, private enterprise and routine project approvals have largely driven the business as the government has sought to increase trade revenues through miners, a rare bright spot in the country's's tumultuous economy.
According to Franco Mignacco, leader of Argentina's's Chamber of Mining Business," Argentina has given agreements to work for the past ten years." " That's's why we have this level of sodium choice, development, and the potential for growth today."
According to Mignacco, Argentina's's current production of 40, 000 tonnes of lithium carbonate could triple by 2024 – 2025 to 120,000 tonnes, moving it past China and closer to Chile, which currently generates about 180,000.
That would be fueled by the addition of new activities to the two reportedly being produced electronically. According to Mignacco, the nation is currently building six sodium projects and has 15 of them in the advanced inquiry or feasibility stage.
In contrast, Chile has several different projects in progress and is dominated by established actors SQM and Albemarle( NYSEALB ). A new challenge by a Chinese partnership was only recently approved by the Bolivian government.
The only two producing operations in Argentina, the Fnix project in Catamarca by American company Livent( NYSELTHM ) and the Salar de Olaroz mine in Jujuy by Australian Allkem Ltd, are expected to double output to 42, 500 tonnes in the coming years.
These would be joined by the Cauchari-Olaroz project, which is owned by Canada's's Lithium Americas( NYSELAC ) Corp. and Ganfeng, China, respectively. In the second half of 2023, production with a capacity for 40, 000 tonnes of lithium carbonate is scheduled to start.
PRO - MARKET STRATEGY
Together, Argentina, Bolivia, and Chile occupy the top half of the world's's mineral wealth in the high-altitude Andean plains' otherworldly salt flats.
However, the methods for developing it are different.
Bolivia's's lithium industry had" repeatedly stalled as a result of excessive state control ," according to Benjamin Gedan, director of the Latin America program at The Wilson Center.
With its public-private design, Chile, he claimed, may have found a" experienced end floor" that would give the state majority control over all new lithium projects while still giving private enterprise an important role to play.
A significant OPEC-style lithium gang in the area had been discussed by officials in response to the resource nationalism wave, but analysts believe this is unrealistic given the variety of industry models and stages of development.
Argentina, however, is dealing with issues like high inflation, capital controls, and economic unrest that make company difficult. Additionally, the country's's upcoming general elections in October will bring about political unpredictability.
However, its sodium network might have the industry booming and even gaining ground on competitors. It would be extremely unlikely to pass Chile, a neighbour, but some experts had high expectations.
According to Natacha Izquierdo, scientist at consultancy ABCEB, Chile right produces and exports much more potassium than Argentina. Argentina had, however, surpass it if the work we are working on right now are successful.
Argentina's's lithium pipeline predicts a boom in" white gold" as Chile tightens its grip.
