Lithium Production Surges in Argentina

In July 2024, Argentina’s lithium production rose by 56.7 percent compared to the same month last year, according to data from the INDEC national statistics bureau.

Lithium Market Dynamics

In the first seven months of the year, total production surged by 62.3 percent compared to 2023. Although the increase is notable, the June growth rate of 128.2 percent was higher. The current international lithium price is around US$10,483 per tonne, a significant drop from November 2022’s US$80,909.

Price Influences and Adjustments

The price decline is due to excess supply and reduced demand for electric cars globally. The removal of subsidies for electric cars in China has also impacted the market, leading mining companies to implement cost-cutting measures.

Future Prospects for Lithium in Argentina

The Argentine government and several mining companies remain optimistic. This confidence is bolstered by investments such as the US$2 billion injection by South Korean company Posco into the Hombre Muerto salt flat. Additionally, French company Eramine Sudamérica, in partnership with Chinese firm Tsingshan, is developing a lithium mine in the Centenario-Ratones salt flat.

Economic Impact of Lithium Projects

Cabinet Chief Guillermo Francos has projected that completed lithium projects will contribute approximately US$47.1 billion to Argentina’s economy in the near future, positioning the country as a leading lithium producer worldwide. By late 2024, Argentina aims to produce over 80,000 tons of lithium carbonate.

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