"At YPF, we understand the entire lithium value chain."

Roberto Salvarezza has extensive experience in the management of scientific and technological institutions. He served as Minister of Science and Technology of the Nation (2019-2021) and as president of Conicet (2012-2015). He is also a senior researcher at this institution, specializing in nanotechnologies.

Currently, he is the president of the boards of YPF Litio and Y-TEC, a company with partners from the Argentine oil company and Conicet. From these two roles, he envisions Argentina as a key player in the energy transition needed by the world to address the climate crisis.

However, he believes that this role should not only be as a supplier of the raw material, lithium, but that Argentina is in a position to add value and become a regional battery producer. 'YPF has a comprehensive view of lithium, just as it does with gas and oil. In this integrated approach, there is no conflict with exportation. The idea is to export part of it and add value to another part within the country,' he asserts.

- In which stages of the lithium chain is YPF involved?

'We are focusing on lithium-ion batteries in several segments. One is energy storage for wind and solar parks. These are intermittent energy sources where, at times, we can store energy in batteries to later inject it into the grid when needed. On the other hand, we have distributed energy, which allows households to generate their own renewable energy and inject it into the system. Batteries are also needed in isolated areas, populations that are currently far from the electrical grid and rely on a diesel generator, which is expensive and polluting. Here, we can consider solar parks with lithium-ion batteries to supply them at night. And, of course, for electric vehicles.'

- What is the stage of battery development at YPF?

'We have two lithium battery cell production plants. The first one is finished, with the equipment already running and undergoing testing. It is located in La Plata. We expect to start producing cells by the end of the year. It will produce about 15 MW of stored energy, equivalent to about 2,500 batteries for homes or 300 to 400 for electric vehicles. The second plant is under development in Santiago del Estero province. It will have 75 MW of storage capacity and will focus more on electromobility. We are interested in scaling this technological knowledge, with national or international partners, to reach a gigawatt scale.'

- Beyond lithium extraction and battery production, what other activities in the lithium chain are you looking to invest in?

'YPF also has YPF Luz, which is producing renewable energy, mainly wind energy from three parks in the south of the country, and a solar park in San Juan. One interesting point is storing that energy in lithium-ion batteries. On the other hand, YPF also has 1,600 fuel sales outlets, where we are already considering installing charging points for when electric vehicles become more common.'

- In which areas of the lithium chain is there a lack of technology or knowledge in Argentina?

'At YPF, we know the entire value chain, from lithium carbonate to the process of transforming it into lithium iron phosphate, which is the material for battery cathodes. We are working to obtain the graphite, which is the anode material. Today, we import it, but graphite is easily accessible for YPF because it is produced from coke, a byproduct of oil refining. The electrolyte, another key component of the batteries, is being developed with the National Atomic Energy Commission in a plant they have for hydrochloric acid production. The separators, made of polypropylene, can also be produced in Argentina. Seventy-five percent of the value of the battery YPF produces has national industry integration.'

- What is YPF Litio's relationship with the provinces responsible for managing the lithium resource?

'We are working with the Energy Company of Catamarca on 20,000 hectares in Fiambalá, where we are drilling wells to assess the lithium content in the area. If it is profitable, we will exploit it in collaboration with Catamarca. We are also in talks with other provincial energy companies. We have no issues or conflicts with them. On the contrary, they see YPF as an important partner. YPF has a different approach regarding indigenous communities and local populations in the region. We have a long history in the country of working on the socio-economic development of regions, so it is more likely that we will obtain the social license to establish an industry than if a foreign company were to do it.'

- Why do you think it is important to have a state-owned company in the lithium chain?

'We believe that the state’s presence in a resource where Argentina is the second largest in the world is important. The goal is to multiply lithium carbonate production fivefold in the coming years, from 40,000 tons to 200,000 tons. However, value-added processing is done in other countries. What we are proposing is that part of this carbonate be industrialized in Argentina, giving our country the opportunity to become a leader in battery production and lead Latin America in the development of this technology to supply the region.'

- What is YPF working on to make the lithium chain more sustainable, from extraction to recycling?

'Obtaining lithium from salt flats is more sustainable than extracting it from rocks, as is done in Australia, the world’s leading producer. In that case, it is open-pit mining and a process that requires many chemicals, uses a lot of water, and emits three times more carbon dioxide (CO2) per ton of lithium carbonate. That’s why Argentina, Chile, and Bolivia’s salt flats are very attractive to foreign companies: they involve a smaller carbon footprint and less environmental impact. It’s true that lithium extraction from salt flats consumes water. The big technological challenge is developing direct extraction techniques, without the evaporation process, which is where water is consumed and takes a long time. These direct extraction methods would reduce water use by 10 times and allow the reinjection of the remaining brine back into the salt flats. We are working on this technology with Conicet researchers in Jujuy and Salta.'

- How are you planning to make the downstream part of the lithium chain more sustainable?

'In the development of batteries, YPF has chosen a technology that does not use cobalt or nickel. Cobalt is both polluting and scarce. In contrast, iron is abundant, and phosphate is a common element in fertilizers used in agriculture. These elements are less polluting, and they also allow for a higher degree of regional and national integration. Finally, we are working to integrate research groups that study battery recycling. China already has companies that recycle batteries. It’s not an urgent issue because we still don’t have production at scale; however, we need to start looking now at the best technologies.'

- When do you envision lithium becoming a key player in the energy transition in Argentina and the region?

'Latin America is rapidly expanding its renewable energy matrix. When we talk about increasing solar and wind energy, the need to store that energy arises because they are intermittent sources. Therefore, we will soon see significant growth in the demand for batteries to harness all the renewable energy production capacity in Argentina and Latin America. As for electric vehicles, it is highly likely that we will start seeing them in quantity on the roads in Argentina in the coming years. By 2030, the country should have 2% of its vehicle fleet as electric, which would mean around 500,000 vehicles. Meanwhile, Mexico and Brazil have stronger commitments, with 9% to 19% of their fleets being electric. There is a very interesting outlook for developing the entire lithium value chain, and Argentina has a great opportunity.'