Argentina has a solid pipeline of lithium projects close to coming online, triggering a wave of production that could result in more EV battery metal.
Many Canadian and Chinese mining firms are attracted to Argentina's resources for EV batteries. On the other hand, Child, the region's top lithium producer, has shared plans for a state-led public-private model that spooked investors.
Bolivia had strict control over its huge untapped resources, while Mexico nationalized its lithium deposits in 2022, as reported by Reuters.
Argentina's Lithium Production Could Triple
In Argentina, the sector is driven by private enterprise and regular approvals of new projects as the government aims to bring in more export dollars through mining. This is also the reason the lithium growth level in Argentina is continuous.
Their lithium carbonate product could triple by 2024 to 2025, surpassing what China can produce and being closer to what Chile is producing now.
It would be driven by new projects that are coming online, along with the two currently in production. Argentina has six lithium projects under construction and 15 in the advanced exploration or feasibility stage.
This growth in lithium production in Argentina is due to the country's vast reserves of metal, which is used in producing batteries for electric vehicles and renewable energy storage systems. The country currently has around 40,000 tonnes of lithium carbonate annually, which could increase to about 165,000 tonnes by 2025.
The increase in production is also expected to bring significant economic benefits to Argentina, with the government estimating that lithium exports could generate up to $2 billion in revenue by 2025.
In addition to the potential economic benefits, increasing lithium production in Argentina could be crucial in reducing global carbon emissions. As countries worldwide aim to transition away from fossil fuels and towards renewable energy sources, such as wind and solar power, there is an urgent need for large-scale battery storage systems.
(Photo : by JUAN MABROMATA/AFP via Getty Images)
A scientist of Y-TEC (YPF Tecnologia) handles a lithium cell in Berisso, Buenos Aires province, on October 18, 2022. - With 19 million tons, Argentina is, after Bolivia, the country with the largest lithium reserves. Now, amid the "white gold" boom, it wants to control the entire production chain: from extraction in the salt flats to manufacturing electric cars.
Lithium-ion batteries are currently the most commonly used battery for electric vehicles and grid-scale energy storage projects. By producing more lithium domestically, Argentina can help support this transition towards clean energy by providing a reliable source of raw materials.
Read also: 'Ultimate' Battery Could Be Closer To Reality With New Graphene Breakthrough
The Risks
However, this growth mustn't come at the expense of local communities or ecosystems. The mining industry has historically been associated with environmental degradation and social conflict - particularly regarding indigenous peoples' rights.
To avoid these negative impacts while still effectively harnessing its vast natural resources, Argentina must prioritize responsible mining practices that respect human rights and minimize ecological harm. This will require working closely with affected communities throughout every stage of development - from exploration through closure - and adopting innovative technologies designed specifically for sustainable resource extraction techniques.
Overall though, increased lithium production represents a significant opportunity for the Argentinian economy and globally. It would be exciting to see how technological innovations rise against concerns related to sustainability issues surrounding the Lithium Mining process!
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