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Ricardo Ceppi | Getty Images News | Getty ImagesMomentum behind Argentina's lithium mining boom is picking up fast. The region is estimated to hold more than half of global lithium reserves, mainly located in Argentina (21%) and Chile (11%). Leftist President Gabriel Boric announced in April that the state was taking a majority stake in the country's lithium industry, dismaying some business leaders. Tomas Cuesta | Getty Images News | Getty Images"Everyone thinks in Latin America, when it comes to mining and lithium, Chile comes to mind. The protests took place shortly after a controversial change in legislation gave lithium mining companies greater access to indigenous lands.
Persons: Ricardo Ceppi, Jujuy Gerardo Morales, Mariano Machado, Gabriel Boric, Javier Milei, Argentinians, Tomas Cuesta, Verisk Maplecroft's Machado, Machado Organizations: Salinas Grandes, Getty, Eurasia Group, International Energy Agency, Americas, Verisk Maplecroft, Group, Verisk, CNBC, La Libertad Locations: Salinas, Jujuy, Argentina, Chile, America, Buenos Aires, Catamarca, Salta, Verisk, China, Chile Chile, Australia, Santiago del Estero, Argentina's
The South American country has a pipeline of copper projects that could produce 793,000 tonnes a year by the end of the decade, government forecasts show, well below neighboring No. Reuters GraphicsBRIDGING THE DEMAND GAPSan Juan is home to five of Argentina's eight main copper projects that have a total capex of $22 billion, a recent government report shows. Argentina has an estimated 65 million tonnes of copper reserves, according to a 2022 government report, some 3% of the global total. "The projects we have are of global importance and relevance because it's estimated that demand for copper between now and 2050 could be multiplied," he said. Copper demand is forecast to double to 50 million tonnes by 2050 from 2020 levels.
Neighboring Chile, the region's top lithium producer, last week unveiled plans for a state-led public-private model, spooking investors. Bolivia has long maintained strict control over its huge though largely untapped resources, while Mexico nationalized its lithium deposits last year. The country has six lithium projects under construction and 15 in the advanced exploration or feasibility stage, Mignacco said. "Argentina's lithium sector has thrived through a decentralized, pro-market strategy," said Benjamin Gedan, director of the Latin America program at The Wilson Center, adding in contrast Bolivia's lithium sector had "repeatedly stalled as a result of excessive state control." "Chile today produces and exports much more lithium than Argentina," said Natacha Izquierdo, analyst at consultancy ABCEB.
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