Argentina Could Overtake Chile as South America’s Top Lithium Producer by 2035

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Argentina could become a bigger lithium producer than Chile, mining 481,000 tons of lithium carbonate equivalent in 2035 versus 426,000 tons for Chile, GEM Mining Consulting has…

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Argentina could become a bigger lithium producer than Chile, mining 481,000 tons of lithium carbonate equivalent in 2035 versus 426,000 tons for Chile, GEM Mining Consulting has forecast. The shift at the top will be driven by growing demand for the battery metal.

Argentina is currently the world’s fourth-largest lithium producer, after Australia, China, and Chile. It is part of the so-called Lithium Triangle, which, besides Chile, also includes Bolivia and describes a region in the Andes notable for its abundant lithium reserves. Chile has been the ultimate South American lithium king so far but just one new mine can change that in favor of Argentina, according to GEM Mining Consulting.

The mine in question is the Pozuelos-Pastos Grandes project, expected to produce as much as 150,000 tons of lithium annually once it becomes operational. The project, in northern Argentina, is led by a company called Lithium Argentina, in partnership with Chinese mining major Ganfeng Lithium. Total investment in the mine is estimated at $3 billion, with development to comprise three phases. Currently, the companies are looking for a third partner in the investment, Mining.com reported earlier this year.

If the Pozuelos-Pastos Grandes project does not take off, however, Argentina’s lithium production will fall in the coming years, GEM Mining Consulting also said. Unlike Argentina, however, Australia and China will continue expanding their output of the battery metal that China has utilized to cement its dominant position on the global energy transition market.

It is this transition that is driving demand for lithium and new investment despite a series of price crashes in recent years as real-world demand fails to live up to forecasters’ expectations. Australia, for instance, is expected to produce 921,100 tons of lithium in 2030, rising to 966,400 tons in 2035.

Demand for lithium is widely expected to keep growing…

The…

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