Argentina lithium production capacity set to surge 250pc by 2035

Argentina lithium

Argentina lithium production capacity is entering a new expansion phase that will reshape global battery raw material supply. The government now targets a more than 250pc increase in Argentina lithium production capacity over the next decade, after capacity has already more than doubled in the past two years. This rapid scale-up positions the country as a central pillar of the lithium triangle and a strategic partner for global battery and EV manufacturers seeking long-term supply security.

Rapid build-out of Argentina lithium production capacity

Argentina lithium production capacity has grown from 75,500 t/yr in 2023 to 186,000 t/yr of LCE in 2025. This represents a 146pc increase and marks a sharp acceleration from 2015, when just 35,000 t/yr came from two active projects. Today there are seven operating projects across multiple salars, backed by a mix of global and regional producers. These assets include operations linked to Rio Tinto, Posco, Ganfeng, Lithium Argentina, Zijin and a Franco-Chinese joint venture, reflecting diversified ownership and financing structures.

By 2030, Argentina lithium production capacity is expected to reach 418,000 t/yr and then rise to 658,000 t/yr by 2035. This trajectory implies a potential 253pc increase versus 2025 levels as brownfield expansions and new projects ramp up. Authorities built their outlook on 15 projects, combining the seven operating sites, their planned expansions and eight advanced developments such as Hombre Muerto West, Pozuelos-Pastos Grandes, new carbonate units and brine projects in the pipeline. As a result, Argentina is moving from a niche supplier to a core pillar of global LCE growth.

Strategic implications for global lithium supply chains

This expansion of Argentina lithium production capacity comes as automakers and battery producers seek diversified supply beyond a few dominant jurisdictions. Additional Argentine brine output should help ease medium-term supply risk, even as demand from EVs, energy storage and grid applications continues to grow. However, timing risks remain around permitting, infrastructure, community engagement and financing, which could still shift the actual ramp-up profile.

For investors, the enlarged project pipeline offers exposure across different risk and return profiles, from established brine operations to newer developments led by mid-tier players. Meanwhile, downstream buyers are likely to pursue more long-term offtake agreements in Argentina to lock in volumes and hedge against price volatility. Over time, the country’s growing role in the lithium triangle may also support the emergence of local value-added industries, such as cathode materials or battery component production, if policy and infrastructure align.

The Metalnomist Commentary

Argentina’s push to expand lithium production capacity confirms that supply growth will not be constrained to one or two regions. The key question is not whether capacity is planned, but how much of it will arrive on time and on budget. For now, Argentina looks set to climb rapidly up the league table of LCE producers, but execution risks, water management and community dynamics will ultimately determine how much of this theoretical capacity becomes reliable, long-term supply.