Argentina Emerges as a Global Lithium Powerhouse: Triples Production Capacity with Dozens of Projects
In a remarkable feat of industrial progress, Argentina has tripled its lithium carbonate production capacity in the last two years, solidifying its position as a key player in the global lithium market. According to a sectoral report, the country now boasts four operational plants and dozens of projects in various stages of development, showcasing its unwavering commitment to harnessing the power of this essential mineral.
The recent inauguration of the Centenario Ratones lithium production plant, owned by Eramine Sudamérica, a joint venture between the French group Eramet and the Chinese steel producer Tsingshan, has been a significant contributor to this remarkable achievement. This $870 million investment has added a capacity of 24,000 tons of lithium carbonate equivalent (LCE) per year to Argentina’s production capabilities.
Rapid Expansion and Diversification
The Centenario Ratones project is the fourth lithium project to enter production in Argentina, joining the ranks of the Olaroz (operated by Arcadium Lithium, a fusion of Australian Allkem and American Livent), Fénix (also operated by Arcadium Lithium), and Cauchari Olaroz (owned by the Chinese company Ganfeng).
In 2022, with only two operational plants, Argentina’s production potential stood at 37,500 tons of LCE, with an actual production of 35,050 tons that year. However, the report from the Argentine Chamber of Mining Companies (CAEM) reveals that in 2023, the country’s capacity nearly doubled with the launch of the Cauchari Olaroz project, which has a production capacity of 40,000 tons per year.
Unlocking Argentina’s Lithium Potential
The report further highlights that the capacity was multiplied again with the expansion of the two longest-running projects. Mina Fénix, inaugurated in 1997, and Salar Olaroz, which began operations in 2015, added 10,000 and 25,000 tons of LCE, respectively, bringing the total installed capacity to 112,500 tons.
CAEM emphasized that once the processes that allow the plants to operate at their maximum capacity are overcome, this will translate into higher export volumes and, with it, greater inflow of foreign currency to Argentina
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Argentina’s Lithium Dominance
The lithium sector is now one of the most dynamic in Argentina, alongside the hydrocarbon industry. The country is the fourth-largest lithium producer in the world, behind Australia, Chile, and China, the third-largest in terms of reserves, behind Chile and Australia, and the second-largest in resources, behind Bolivia.
Argentina currently has a portfolio of 50 lithium projects in various stages of development, and with the advanced projects under construction, the country is poised to soon climb to the third spot as a global lithium producer.
Conclusion
Argentina’s remarkable achievements in the lithium industry have positioned the country as a global powerhouse, with the potential to become a dominant player in the years to come. The rapid expansion of production capacity, the diversification of projects, and the country’s vast lithium resources all contribute to Argentina’s growing influence in the global lithium market.
