Argentina wants to increase lithium production by 75% by 2025 and sees no danger from trade war

The Argentine Chamber of Mining Companies said that Argentina, which is the fifth largest lithium producer in the world, will produce 130,800 metric tonnes of lithium carbonate (LCE) by 2025. This represents a 75 percent increase over 2024.

According to Alejandra Cardona of CAEM, the executive director, a major boost in production will come from the expansion of operations in Catamarca, Jujuy and Salta, which are the provinces north with the biggest lithium operations.

Cardona reports that Argentina has six lithium operations. Four of these have recorded production of LCE of 74.600 tons in 2024. This is 62% more than 2023. South America is home to the largest lithium resource in the world, which is spread across Bolivia, Argentina, and Chile. It's a critical metal for electric vehicles, batteries, and the energy transformation.

Cardona stated that the higher volume (in 2024), is due to the expansion at Salar de Olaroz and the Fenix Mine, as well as the ramp-up done by Cauchari Olaroz. He also added that production began at the Sal de Oro facility that opened in October of 2024.

In a Buenos Aires presentation, CAEM and International Lithium Association(ILiA) leaders in the industry said that the Argentinean mining industry would not be affected by the tariff measures of U.S. president Donald Trump.

Jorge Mora is the representative of ILiA in South America. He said he doesn't expect a decline in consumption.

China is the world's largest consumer of Lithium, the country that produces the most cars, and where the majority of them are consumed. "That's not Trump," Mora said, praising Argentina’s economic direction, under the libertarian president Javier Milei who encouraged tax incentives to attract investment.

Roberto Cacciola of CAEM told reporters that he didn't believe Argentina would be "badly impacted" by the current trade war, and that it could open new markets for Argentina.

Cacciola added that Argentina could face shocks in the energy, mining, and agriculture sectors, but he did not see any major effects. (Reporter Lucila Sigal, Writing by Alexander Villegas, Edited by Walter Bianchi & Alistair Bell).

(source: Reuters)