On Wednesday, Argentine President Javier Milei hosted a meeting at Casa Rosada with key executives from the lithium industry to discuss a potential $2.5 billion investment. The meeting included Wang Xiaoshen, President of Ganfeng Lithium, and Sam Piggot, head of Lithium Argentina AG, along with Jason Luo, President of Ganfeng Lithium South America, and Ignacio Celorrio, President of Lithium Argentina in the country.
Expanding Lithium Projects in Argentina
The discussions revolved around two major lithium projects that would enter Argentina’s Large Investment Incentive Regime (RIGI). These projects, to be jointly developed by Ganfeng Lithium and Lithium Argentina, include the expansion of Cauchari-Olaroz in Jujuy and the joint Pozuelos/Pastos Grandes project in Salta.
The Cauchari-Olaroz project is already operational and is undergoing expansion, while Pozuelos/Pastos Grandes is in the development phase. “We are partners with Ganfeng Lithium in both projects. Additionally, they own 100% of a project adjacent to Pastos Grandes. Therefore, we are evaluating the possibility of jointly developing the Pozuelos/Pastos Grandes basin projects,” explained Celorrio in an interview with Forbes.
The Role of RIGI in Attracting Investments
RIGI is seen as a key factor in attracting foreign investment to Argentina’s lithium sector. “RIGI serves as an important catalyst for making investment decisions. The government has been clear about its commitment to attracting investments. The only uncertainty is the lithium price, which has dropped significantly. However, Argentina has the potential to develop projects that can withstand market fluctuations if operational costs are kept at appropriate levels,” added Celorrio.
Strategic Timing and Ganfeng’s Mariana Project
The timing of the meeting was strategic, coinciding with the inauguration of Ganfeng Lithium’s Mariana project. This new initiative, developed within a record 33-month timeframe, required an investment of $980 million. The Mariana project is based in the Salar de Llullaillaco and utilizes cutting-edge technology to minimize environmental impact. It includes an off-grid solar park and a lithium chloride processing plant to refine the extracted mineral.
Argentina’s Growing Lithium Investment
The executives emphasized the scale of their existing investments in Argentina. “So far, we have invested nearly $3 billion between both companies,” they highlighted. The substantial financial commitment underscores Argentina’s importance as a global lithium supplier, a critical component for electric vehicle batteries and renewable energy storage.
Government Support and Future Engagements
The meeting was also attended by Economy Minister Luis Caputo. Additionally, the executives met with Secretary of Mining Luis E. Lucero and Chief of Cabinet Guillermo Francos. Some of these officials are expected to attend the upcoming Prospectors & Developers Association of Canada (PDAC) mining summit in early March, a key event for global mining investments.
Conclusion
Argentina continues to position itself as a major player in the global lithium market, with foreign investment playing a crucial role in expanding the country’s production capacity. The collaboration between Ganfeng Lithium and Lithium Argentina, supported by the government’s pro-investment policies, highlights Argentina’s potential to lead in lithium extraction and processing. With billions already invested and new projects underway, the country’s lithium sector is set for significant growth in the coming years.