The lithium boom is just beginning in Argentina: there are 40 mining projects in the pipeline

In the country, there are two active operations that extracted 37,500 tons in 2021. With the projects in the pipeline, this production could multiply by 10. There are still opportunities to move forward with more sustainable mining practices and social justice.

Lithium has been seen as a great opportunity for Argentina for several years. It is already the fourth largest producer in the world, behind Australia, Chile, and China. But this industry is just gaining momentum, because the Puna region has significant reserves of this metal in various stages prior to production.

The country could become a key player in the global energy transition needed by the planet. The goal is to phase out fossil fuels, which are responsible for the climate crisis, and leverage the global economy towards more sustainable sources like solar and wind energy. Lithium is crucial for this, as it is an essential component in the batteries of cell phones, but also electric vehicles and energy storage systems that will accompany wind and solar parks.

A report published by the International Energy Agency in 2021 indicates that the demand for lithium will increase 42 times if the projections for achieving carbon neutrality by 2040 are met. This demand will primarily come from the automotive sector. It's important to note that a cell phone battery only needs 3 grams of lithium, but an electric vehicle battery requires between 4 and 8 kilograms, and in a bus, it can exceed 200 kilograms.

Currently, there are only two major projects operating in 2023, but there is a long list of other potential mines at different stages of development. The challenge is to ensure that these productions incorporate the best available technology for sustainable extraction and that it is also fair for the communities in the region. The opportunity to implement these good practices is now.

Active and planned projects

'Argentina has enormous potential to increase its share in the global supply of lithium. But the challenges are to improve the efficiency and environmental sustainability of the techniques used so far and add value to this primary production,' states a report on lithium by the National Mining Secretariat.

In 2022, Argentina produced 37,500 tons of lithium annually from two plants:

Fénix, in the Salar de Hombre Muerto (Catamarca). With a production capacity of 20,000 tons, it plans to scale to 42,000. It is owned by the U.S. company Livent Corporation.
Sales de Jujuy, in the Salar de Olaroz (Jujuy). Produces 16,000 tons, with plans to scale to 42,000. The project is a joint venture between the Australian company Allkem (majority shareholder), Toyota (Japan), and Jemse, a state-owned company from the province of Jujuy.

In 2023, production began at the Exar SA mining project in the Cachauri-Olaroz salar, also in Jujuy. However, as of June 2023, the quality of the lithium carbonate production had not yet reached the purity required for use in battery manufacturing. Its maximum capacity is 40,000 tons annually. It is a partnership between Lithium Americas Corp (Canada), Ganfeng Lithium (China), and Jemse.

How much could Argentina produce?

A report by the National Mining Secretariat states that if the projects with lower certainty levels currently in development come online in the coming years, Argentina could total an additional 373,500 tons to its current capacity of 37,500 tons.

According to reports from this government body, in 2023, six projects were very advanced, being in the construction phase. In addition to the aforementioned Exar, these included:

Centenario-Ratones (Salta). Run by the French company Eramet. 24,000 tons of lithium carbonate per year (the second stage could reach 70,000). Located in the same-named salar.
Mariana (Salta). Jiangxi Ganfeng Lithium Co. (China). 20,000 tons annually. In the Llullaillaco salar.
Sal de Oro (Catamarca). Posco (South Korea). 25,000 tons annually. In the Salar del Hombre Muerto.
Sal de Vida (Catamarca). Allkem (Canada). 45,000 tons annually with the second stage. In the Salar del Hombre Muerto.
Tres Quebradas (Catamarca). Zijin Mining Company (China). 20,000 tons annually. In the Laguna Verde salar.

Most of these lithium mines have a lifespan of 25 to 40 years. The three active projects and these five others could increase production up to 200,000 tons by 2025.

Additionally, two projects were set to begin construction in 2023: Pastos Grandes and Salar del Rincón (Puna Mining), both in Salta. The report from the National Mining Secretariat also identifies other projects based on their development stage. All these projects would add another 218,000 tons annually. They are:

3 projects in the Prefeasibility stage
5 in the Preliminary Economic Assessment (PEA) stage. This is an economic analysis to determine the potential viability of a mine.
20 in the Advanced Exploration stage. This is the final exploration stage, which involves evaluating the size and concentration of lithium.

5 key points to promote fair and sustainable extraction

Argentina’s potential in lithium development is enormous. However, several key aspects must be considered to ensure this productive activity is carried out with environmental and social responsibility. These include:

Rigorous environmental assessment and monitoring. Lithium extraction must be carried out under strict environmental regulations. An exhaustive assessment of potential environmental impacts must be conducted before starting any mining project, and a constant monitoring system must be established to oversee and mitigate possible impacts. This involves protecting local ecosystems, water, and biodiversity, minimizing the carbon footprint, and promoting recycling and material reuse practices.
Community participation and consultation. Local communities must be consulted and actively involved in all stages of the mining project. Their rights, needs, and concerns must be heard and taken into account. This involves establishing open and transparent communication channels, encouraging local job creation, and ensuring that the profits generated by lithium extraction are shared equitably.
Socioeconomic development and diversification. Lithium extraction should not only generate short-term economic benefits but also contribute to the long-term socioeconomic development of communities. It is important to promote economic diversification to avoid exclusive dependence on the mining industry, fostering job creation in sectors like tourism, sustainable agriculture, or the research and development of clean technologies.
Innovation and clean technology. The pursuit of sustainable lithium extraction involves using clean and efficient technologies throughout the process. Investment in research and development is necessary to improve extraction methods and reduce the amount of water and energy used in the process. Additionally, innovation in the design and manufacturing of batteries should be promoted, focusing on the use of recyclable materials and reducing waste generation.
Corporate responsibility and transparency. Companies involved in lithium extraction must take responsibility for their actions and operate transparently. They must comply with international social and environmental responsibility standards. Disclosing information about their activities, impacts, and measures taken to minimize them is crucial to building public trust and ensuring fair and sustainable lithium extraction.