Argentina Greenlights Major Lithium Mining Project

Key Takeaways

1. Argentina has approved the Rincón lithium mining project, expected to be one of the largest in the country.
2. The project, developed by Rio Tinto, involves an investment of approximately $2.7 billion and aims to start production in 2031.
3. The Rincón mine will produce 60,000 tonnes of battery-grade lithium annually and is part of 10 active projects in Argentina.
4. Argentina produced 74,600 tonnes of lithium carbonate equivalent in 2024 and aims to set new export records in 2025.
5. The demand for lithium is rising, driven by the electric vehicle sector, with a predicted 40% shortfall in supply by 2035 according to the International Energy Agency.

Argentina’s administration has given the green light to the lithium mining venture known as Rincón, which is poised to be among the largest of its kind in the nation. This initiative, together with current operations and ongoing constructions, might position Argentina as the second-largest lithium producer in the world.

Project Details

The Rincón mine is being developed by the multinational company Rio Tinto and has been approved under a fresh investment incentive program called RIGI. The company estimates that the investment for this mining endeavor will be approximately $2.7 billion, with production expected to start in 2031.

Production Capacity

This mine is planned to yield 60,000 tonnes of battery-grade lithium annually, making it one of the most significant projects in Argentina. It will contribute to 10 active projects and is among 60 others being developed in the country.

In 2024, Argentina managed to produce 74,600 tonnes of lithium carbonate equivalent (LCE) and is aiming to set new export records in 2025. With the current progress of various mines, Argentina may soon surpass other nations to become the second-largest producer, following Australia. As per data from S&P Global Market Intelligence, Australia holds the largest total lithium reserves and resources at 67.7 million metric tons.

Demand Surge

In recent years, the need for lithium has surged, spurred by the electric vehicle (EV) sector and energy storage solutions. This trend is increasingly important as the International Energy Agency (IEA) predicts a 40% shortfall in lithium supply by the year 2035.

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