ABM and XTC Lithium Join Forces on Argentina’s Carachi Lithium Project

ABM

New partnership signals US-Australia collaboration to unlock critical lithium resources in South America

ABM Secures Option to Acquire 50% Stake in Carachi Lithium Project

American Battery Materials (ABM) and XTC Lithium have signed a non-binding agreement on Argentina’s Carachi Lithium Project. The partnership gives ABM the option to acquire up to a 50% interest in the project. ABM can form a joint venture once it secures a 10% stake.

The Carachi project is located in Argentina’s Catamarca Province, a region known for rich lithium brine deposits. The deal marks an early-stage collaboration between the US and Australian developers in a key critical materials hotspot. As lithium demand surges, access to Argentine salars becomes increasingly strategic for global battery supply chains.

XTC Expands Footprint Through Caroline Lithium Acquisition

XTC Lithium controls 21.9 km² of lithium assets through its acquisition of Caroline Lithium. This property includes the Carachi project, which now becomes a joint development opportunity. ABM’s entrance reflects growing investor interest in securing long-term lithium supply from Latin America.

Meanwhile, the non-binding nature of the agreement leaves flexibility for both firms to define next steps. This may include detailed exploration plans, resource estimation, and permitting processes in coming quarters. Industry watchers view such early partnerships as necessary to scale projects quickly in competitive jurisdictions.

Strategic Lithium Alliances Gain Momentum

As a result of tightening global lithium supply, cross-border alliances are gaining momentum. US firms are especially active in Argentina, seeking to diversify supply chains away from Asia. With lithium designated a critical mineral by the US government, projects like Carachi are closely watched.

The ABM-XTC deal represents another step in realigning the lithium industry for the energy transition. With careful execution, the Carachi project could become a vital node in the Western Hemisphere’s lithium map.

The Metalnomist Commentary

Strategic cooperation between American and Australian lithium players in Argentina points to growing urgency for regional lithium independence. If realized, Carachi could play a small but meaningful role in easing pressure on global battery supply chains.