Lithium extraction in Argentina, the world’s fourth-largest producer of the metal, surged by 49.7% in the first four months of 2024 compared to the same period last year, according to data from the national statistics agency Indec.
The South American country, which is part of the “lithium triangle” along with Chile and Bolivia, has seen a boom in lithium production fueled by new project and investment announcements. Argentina’s pro-business government, led by libertarian President Javier Milei, has attracted investments from foreign companies in Canada and China as it seeks to reverse the country’s prolonged economic slump driven by triple-digit inflation.
In May, Eramine Sudamerica, a subsidiary of French group Eramet, and Chinese steel company Tsingsham announced the upcoming inauguration in July of their first lithium carbonate plant in northern Salta province.
The surge in lithium production is driven by the growing demand for the ultra-light metal, which is a critical component in rechargeable batteries for electric vehicles. Lithium prices had skyrocketed in recent years before plunging in 2023 largely due to slowing EV sales in China.
The impressive 49.7% increase in Argentina’s lithium output during the first four months of 2024 highlights the country’s potential to become a major player in the global lithium market as it continues to attract foreign investment and develop new projects.