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.

Argentina Lithium Production Push Strengthens Critical Minerals Growth Strategy

Daniel Gonzalez

Argentina lithium production is accelerating as the country seeks to become one of the world’s leading suppliers of battery materials. Vice-minister of energy and mining Daniel Gonzalez said Argentina is now the fastest-growing lithium producer and expects the country to become the largest soon.

The government has raised Argentina’s estimated lithium reserves to 23mn t of lithium carbonate equivalent. It has also increased its copper reserve estimate by 3mn t since last September, strengthening the country’s position across two key energy transition metals.

Argentina lithium production is being expanded by companies including Rio Tinto, Ganfeng, Lithium Argentina and Posco. At the same time, the country is working to develop four greenfield copper projects that could create a new large-scale copper industry.

Lithium Growth Positions Argentina as a Battery Materials Powerhouse

Argentina’s lithium growth reflects the strategic importance of its brine resources in the global battery supply chain. Demand from electric vehicles, energy storage and battery manufacturing continues to support long-term interest in secure lithium carbonate and lithium hydroxide supply.

The country’s larger reserve estimate improves its investment case. It gives developers, battery manufacturers and downstream customers more confidence that Argentina can support long-term production growth.

However, reserve scale alone will not guarantee success. Argentina must convert projects into reliable production, build infrastructure, manage water and permitting risks, and maintain stable rules for foreign investors.

Copper Ambition Adds Depth to Argentina’s Mining Strategy

Argentina is also targeting major copper growth. Gonzalez said the country aims to produce 1.5mn-2mn t of copper over the next five to seven years, supported by four greenfield projects now under development.

This copper ambition is significant because copper is central to grids, electrification, renewable energy, electric vehicles and industrial infrastructure. If Argentina can deliver new copper output, it could become a more important supplier to global energy transition supply chains.

The government is using tax incentives to attract investment. These include a lower income tax rate, no tariffs on imports, no export duties, and 30 years of regulatory and tax stability.

Still, investor confidence remains the key challenge. Argentina is trying to recover from years of policy volatility and economic mismanagement, while the cost of capital remains high. Lower financing costs will be essential if the country wants to move large lithium and copper projects from ambition to production.

The Metalnomist Commentary

Argentina has the mineral base to become a major lithium and copper supplier, but geology is only the starting point. The real test will be whether tax stability, investor trust and project execution can overcome the country’s long history of policy risk.

US Tariffs Could Boost Argentina’s Lithium Salts Production

Argentina Lithium

New Tariff Policies May Propel Argentina to the Forefront of Battery Materials Supply

US President Donald Trump’s new tariff measures, announced this week, could significantly impact the global lithium market. While many energy and mineral products, including lithium carbonate and lithium hydroxide, are exempt from new tariffs, the shift towards more localized battery production in the US could create new opportunities for Argentina's lithium sector. Argentina, with its lower-cost brine assets, could become a key player in the production of battery-grade lithium salts.

Shift in Global Battery Manufacturing and Tariffs Impact

Trump's recent tariff policy introduced significant duties on completed batteries from China, Japan, and South Korea. These duties are likely to accelerate the trend of localizing battery production in the US. Under the Inflation Reduction Act of former President Joe Biden’s administration, the US has already seen a shift toward local manufacturing, with major battery manufacturers like Panasonic, Samsung SDI, Ford, and Toyota planning to open around 10 new battery factories this year.

However, with a lack of domestic mining and processing capacity in the US, the country will increasingly rely on imports for raw materials to meet the demand for battery production. The US currently has only one operating lithium mine, Albemarle's Silver Peak mine in Nevada. Despite producing lithium carbonate and hydroxide, this mine cannot meet the higher purity standards required for battery-grade products needed in electric vehicles (EVs).

Argentina’s Competitive Edge in Lithium Salts Production

Argentina stands out due to its potential to produce high-quality, cost-competitive lithium salts. Brine operations in Argentina are expected to be more efficient and less costly than other South American and spodumene-producing countries. Although brine facilities require higher initial capital costs, their ongoing operational costs are lower than spodumene-based assets, making them an attractive option for global supply chains.

Argentina’s competitive advantage is further strengthened by its 3% royalty tax on lithium mining, compared to the 40% ceiling in Chile, which has a more developed lithium industry. Despite facing a 10% import tariff by the US, Argentina is well-positioned to expand its lithium production to meet the growing demand from battery factories in the US. According to Argentina’s Vice Minister of Energy and Mining, Daniel Gonzalez, "All of Argentina's lithium projects go to battery grade," signaling the country's commitment to producing high-purity lithium products.

While countries like Australia, Brazil, and some African nations rely on China for lithium processing, Argentina's direct production of battery-grade lithium offers it a strategic advantage in the global market.

Eramet Argentina Lithium Plant Reaches 80% Capacity as Ramp-Up Recovers

Eramet Argentina Lithium Plant

Eramet Argentina lithium plant performance improved sharply in March as the Centenario-Ratones project reached around 80% of its designed capacity. The French mining group said the plant operated near 80% of its 24,000 t/yr nameplate capacity after recovering from February production setbacks.

The Eramet Argentina lithium plant is strategically important because Argentina is becoming one of the fastest-growing lithium supply regions globally. Stronger output from Centenario-Ratones supports the country’s push to challenge Chile’s long-standing lithium leadership.

The Eramet Argentina lithium plant produced 3,720t of lithium carbonate in the first quarter. Output was limited by downstream equipment shutdowns and natural gas supply constraints, but operations normalised in March.

Centenario-Ratones Recovers After February Disruptions

Eramet temporarily shut part of its downstream equipment in February for an extended period. The work was designed to implement improvements and support the ramp-up process.

Natural gas supply constraints also limited production during the quarter. These disruptions show that lithium brine projects depend not only on resource quality, but also on reliable processing equipment and energy supply.

Centenario-Ratones achieved its highest production rate to date in March. This suggests the project is moving closer to stable commercial performance after early ramp-up challenges.

The ramp-up is expected to be completed by July at the latest. If achieved, this would strengthen Eramet’s position in Argentina’s lithium supply chain and improve near-term lithium carbonate availability.

Lithium Sales Highlight Stronger Price Environment

Eramet sold 3,920t of lithium carbonate in the first quarter, generating €57mn in revenue. That implies an average realised price of roughly $16,986/t.

The first-quarter lithium revenue already exceeded Eramet’s lithium revenue for all of 2025. This highlights the impact of stronger lithium carbonate prices and improving sales volumes.

The result matters for project economics. Higher lithium prices can support ramp-up costs, equipment improvements and working capital needs during the early production phase.

For Argentina, Centenario-Ratones adds to a growing pipeline of lithium projects backed by more investor-friendly policies. Successful ramp-up would reinforce Argentina’s role as a major future source of lithium carbonate for battery supply chains.

The Metalnomist Commentary

Centenario-Ratones shows both the opportunity and execution risk in Argentina’s lithium growth story. Strong prices improve project economics, but stable energy supply and processing reliability will decide whether ramp-up targets become sustained production.

Argentina Lithium Feedstock Factory Could Cut Costs and Strengthen Local Supply

Argentina Lithium

The Argentina lithium feedstock factory could change the country’s cost structure for lithium brine processing. Tsingshan is preparing to open the plant in Jujuy. The site will produce soda ash and hydrochloric acid locally. As a result, the Argentina lithium feedstock factory could reduce import dependence across the highland lithium sector.

The project matters because reagents are central to lithium brine processing economics. Producers in Argentina still import most chemical inputs. That raises logistics costs and delays deliveries to remote operations. Therefore, local chemical supply could improve both margins and reliability.

Tsingshan has upgraded the Perico facility since July 2023. The plant can produce up to 30,000 metric tonnes per year of soda ash. Hydrochloric acid capacity has not been disclosed. However, even partial local supply would ease pressure on upstream lithium projects.

Local Chemical Supply Could Lower Argentina Lithium Production Costs

Argentina lithium production costs remain structurally high versus Chile. Operators face difficult access routes and limited road infrastructure. That makes reagent transport more expensive. Consequently, Argentina’s operating costs are about 20 percent higher today.

Feedstock demand also shows the scale of the logistics burden. Around 4 tonnes of feedstock are needed for 1 tonne of lithium carbonate. One producer in Salta receives about 20 trucks per day. Therefore, every local tonne of reagent could reduce freight intensity.

The Argentina lithium feedstock factory could improve competitiveness without waiting for major mining expansion. Lower chemical costs would support existing producers first. It could also improve project economics for new entrants. Meanwhile, investors may view local input manufacturing as a positive signal for long-term industrialisation.

Tsingshan Argentina Expands Beyond Chemicals Into Resource Positioning

Tsingshan Argentina is not building only a support asset. The company has also partnered with Jujuy on a lithium project in the Olaroz salt flats. That creates vertical alignment between chemicals and extraction. As a result, Tsingshan could strengthen its position across the regional lithium value chain.

This approach reflects a broader shift in battery materials strategy. Companies increasingly want control over feedstocks, processing, and resource access. Argentina offers scale, but it still needs better industrial support systems. Therefore, reagent localisation may become a model for future investment.

For global supply chains, the message is clear. Lithium competitiveness does not depend only on geology. It also depends on chemicals, roads, and execution. The Argentina lithium feedstock factory highlights how midstream support can reshape upstream economics.

The Metalnomist Commentary

Argentina’s lithium challenge has never been only about resource quality. It has also been about cost inflation caused by imported inputs and weak infrastructure. If this plant performs well, local feedstock production could become one of the country’s most practical competitive advantages.

Eramet Argentina Lithium Production Begins with Technical Setbacks but 2025 Target Holds

Eramet

Eramet Argentina lithium production has officially commenced, with the French miner reporting 440 tonnes of lithium carbonate equivalent (LCE) in Q1 2025. Despite a slow start due to technical issues, the company maintains its annual production guidance and remains committed to scaling up output from its pioneering direct lithium extraction (DLE) facility.

Technical Hurdles Delay Ramp-Up at Eramine JV

Eramet, in partnership with China’s Ganfeng Lithium through its Eramine joint venture, faced initial challenges as a key brine concentration unit malfunctioned. As a result, only 40 tonnes of LCE were sold in Q1—just 9% of total quarterly output. However, this was Eramine’s first full quarter of production following its initial LCE batch in December 2024.

The company still expects to produce between 10,000 and 13,000 tonnes of LCE in 2025, roughly half of the plant’s nameplate capacity of 24,000 tonnes per year. Eramet emphasized that recovery from the technical fault is underway and long-term production goals remain unchanged.

Argentina Hosts First Commercial-Scale DLE Operation

Eramet operates the only commercial-scale DLE facility currently active in Argentina, setting a benchmark in Latin America’s lithium sector. While the LCE produced is high purity, it is not yet battery-grade. So far, sales have been limited to a Chinese cathode materials producer—an early customer validating Eramine’s product in a competitive market.

This operational milestone reinforces Argentina’s role as a future lithium hub and Eramet’s ambition to secure a foothold in the global battery materials supply chain.

Broader Portfolio Supports Growth Strategy

Eramet’s total Q1 revenue stood at €742 million ($845 million), flat year-on-year. Lithium, along with nickel, manganese, and mineral sands, contributed over 60% of the company’s revenue. The diversified portfolio provides financial resilience as the lithium operation ramps up and stabilizes.

The Metalnomist Commentary

The Eramet Argentina lithium production launch highlights the promise and challenges of scaling direct lithium extraction at commercial levels. While the start was modest, Eramet’s technology-first approach and global partnerships position it as a strategic player in the evolving lithium landscape.

Argentina Salta Lithium Boom Positions Province as Global Energy Transition Hub

Argentina Salta Lithium

Argentina Salta lithium boom accelerates as the northern province emerges as the cornerstone of the country's expanding mining industry following government approval of Rio Tinto's Rincon project under the RIGI incentive program. The Argentina Salta lithium boom reflects strategic positioning within global energy transition supply chains, with provincial mining secretary Romina Sassarini declaring Salta will become "a reference point for lithium in the country and worldwide" as multiple international producers establish operations in the resource-rich region.

RIGI Program Attracts International Lithium Investment

Argentina Salta lithium boom benefits from the national government's RIGI economic and legal incentive program that provides fiscal and legal stability for major mining investments. Rio Tinto's newly approved Rincon mine represents the fourth lithium project in Salta, requiring $2.7 billion investment to produce 60,000 tonnes annually by decade's end. China's Ganfeng, France's Eramine, and South Korea's Posco already operate lithium production facilities while applying for RIGI incentives for expanded production stages.

Meanwhile, Argentina's lithium output surged from 75,000 tonnes in 2024 to projected 131,000 tonnes in 2025 according to mining trade organization CAEM. This rapid production growth positions Argentina as a critical supplier for global battery markets while establishing Salta as the primary production hub. The province's strategic importance extends beyond lithium to include copper and gold reserves, including First Quantum Minerals' $3.5 billion Taca Taca copper-gold-molybdenum project awaiting final permits.

Infrastructure Development Addresses Production Bottlenecks

However, massive infrastructure investments are required to support expanding mining operations and projected production growth. Mining projects operating and planned in Salta require additional 575MW of electricity generation capacity, prompting provincial development of comprehensive electricity plans emphasizing solar power deployment. The renewable energy focus aligns with sustainable mining practices while addressing power supply constraints.

Therefore, transportation infrastructure development becomes equally critical as the province pursues multilateral bank financing for the 2,400-kilometer bi-oceanic highway connecting Brazil to Chile through Argentina and Paraguay. This continental corridor will enable efficient lithium and mineral exports to Pacific and Atlantic markets while reducing logistics costs. Sassarini emphasized that coordinated efforts between provincial, company, and national government stakeholders will resolve logistic bottlenecks limiting industry growth.

Argentina Salta

Strategic Positioning Supports Global Supply Chain Integration

Furthermore, Salta's emergence as a world-class lithium exporter addresses growing global demand for battery materials essential to electric vehicle production and energy storage systems. The province's integrated approach combining multiple international producers, infrastructure development, and regulatory stability creates competitive advantages for sustained industry growth. Mining sector transformation generates substantial economic impact through employment, tax revenue, and supply chain development.

As a result, the RIGI program eliminates financial bottlenecks while creating frameworks for long-term industry development across multiple mineral commodities. Salta's strategic positioning within the Lithium Triangle region enhances Argentina's competitiveness against Chilean and Bolivian producers while serving diverse global markets. The coordinated development approach demonstrates how provincial governments can catalyze mining industry growth through targeted policy support and infrastructure investment.

The Metalnomist Commentary

Argentina's Salta province exemplifies how strategic resource endowments combined with supportive policy frameworks can rapidly transform regional economies into global supply chain hubs, particularly important as lithium demand accelerates through energy transition requirements. The province's comprehensive approach addressing both production capacity and infrastructure bottlenecks demonstrates sophisticated understanding of mining industry development requirements, positioning Salta advantageously within the competitive global lithium market as established and emerging producers seek reliable supply sources.

Argentina Lithium Growth Could Challenge Chile’s Regional Lead

Argentina Lithium

Argentina lithium growth could reshape Latin America’s lithium map over the next decade as new projects advance under more investor-friendly rules. Argentina is expected to match Chile’s lithium output by 2035, with some industry participants arguing it could overtake Chile even earlier.

Argentina lithium growth is being supported by faster permitting, large brine resources and stronger investment incentives. By contrast, Chile’s lithium expansion remains constrained by restrictive legislation, lengthy approval processes and uncertainty around new project development.

Argentina lithium growth is strategically important because lithium remains central to electric vehicles, energy storage and battery supply chains. Global buyers want large-scale, politically stable and western hemisphere supply outside more exposed jurisdictions.

Chile remains the region’s largest producer today. However, its future output growth depends heavily on existing producers and slow-moving new projects, while Argentina has a deeper pipeline of advanced developments.

Chile’s Lithium Policy Slows New Supply

Chile has long been Latin America’s dominant lithium producer, but its regulatory system is limiting new investment. Lithium remains non-concessionable and is still treated under legislation linked to nuclear materials.

Companies seeking to extract lithium in Chile must apply for special mining contracts. These contracts are granted through public bidding processes that can be lengthy, bureaucratic and uncertain.

This creates a major exploration problem. Companies may be reluctant to explore land if they cannot be confident of later securing extraction rights.

Chile’s national lithium strategy also requires all new projects to use direct lithium extraction. DLE is viewed as more environmentally friendly than traditional evaporation ponds, but it creates technical and cost challenges.

Each DLE process must be designed around the specific chemistry of each brine resource. That means technology used at one salar cannot simply be copied at another.

This raises development costs and lengthens project timelines. Industry participants estimate that DLE projects may require investment of up to $44,000 per tonne of lithium carbonate equivalent, compared with about $26,000/t for evaporation projects.

Chile’s new supply pipeline is therefore moving slowly. The first major new project, Rio Tinto’s Maricunga, is expected only by the end of 2030, with another new project expected in 2032.

Until then, Chile may rely mainly on capacity increases from existing producers. That could limit its ability to respond to rising lithium demand if Argentina’s project pipeline accelerates.

Argentina’s Rigi Regime Attracts Lithium Capital

Argentina is moving in the opposite direction. Its government has streamlined licensing and introduced the Rigi incentive regime for large investments.

Rigi provides tax exemptions, import-export benefits and legal protections for approved projects. It also allows companies to settle certain disputes in courts outside Argentina, improving investor confidence.

Ten lithium projects have already applied to Rigi, with three approved. The programme has become a major signal to international investors seeking policy stability and faster project execution.

Argentina now has more than 60 active lithium projects and seven producing assets, the most in Latin America. Two new developments are expected to come on line this year, lifting projected output to 159,000t of lithium carbonate equivalent.

That remains below Chile’s 305,000t in 2024. However, Argentina has more than 20 projects in advanced stages, including eight close to production.

Argentina’s mining ministry expects output to reach 583,000 t/yr of lithium carbonate equivalent by 2035. That would put the country in position to match or overtake Chile if Chile’s permitting regime does not change.

The investment logic is clear. Argentina offers large brine resources, a more open policy framework and exposure to western hemisphere supply chains. That combination is increasingly attractive to battery makers, automakers and mining companies.

Chile still has enormous lithium potential. But potential alone does not create supply. Without faster approvals and clearer rules, Chile risks losing regional leadership to Argentina.

For the lithium market, this shift matters. Argentina’s rise could increase competition, diversify supply and give buyers more options in South America. It could also make Latin America’s lithium growth less dependent on Chile’s policy choices.

The Metalnomist Commentary

Argentina’s lithium advantage is not only geological; it is regulatory. Chile still has world-class resources, but Argentina is turning policy speed into supply-chain momentum.

Argentina Lithium Growth Could Challenge Chile’s Regional Lead

Argentina Lithium

Argentina lithium growth could reshape Latin America’s lithium map over the next decade as new projects advance under more investor-friendly rules. Argentina is expected to match Chile’s lithium output by 2035, with some industry participants arguing it could overtake Chile even earlier.

Argentina lithium growth is being supported by faster permitting, large brine resources and stronger investment incentives. By contrast, Chile’s lithium expansion remains constrained by restrictive legislation, lengthy approval processes and uncertainty around new project development.

Argentina lithium growth is strategically important because lithium remains central to electric vehicles, energy storage and battery supply chains. Global buyers want large-scale, politically stable and western hemisphere supply outside more exposed jurisdictions.

Chile remains the region’s largest producer today. However, its future output growth depends heavily on existing producers and slow-moving new projects, while Argentina has a deeper pipeline of advanced developments.

Chile’s Lithium Policy Slows New Supply

Chile has long been Latin America’s dominant lithium producer, but its regulatory system is limiting new investment. Lithium remains non-concessionable and is still treated under legislation linked to nuclear materials.

Companies seeking to extract lithium in Chile must apply for special mining contracts. These contracts are granted through public bidding processes that can be lengthy, bureaucratic and uncertain.

This creates a major exploration problem. Companies may be reluctant to explore land if they cannot be confident of later securing extraction rights.

Chile’s national lithium strategy also requires all new projects to use direct lithium extraction. DLE is viewed as more environmentally friendly than traditional evaporation ponds, but it creates technical and cost challenges.

Each DLE process must be designed around the specific chemistry of each brine resource. That means technology used at one salar cannot simply be copied at another.

This raises development costs and lengthens project timelines. Industry participants estimate that DLE projects may require investment of up to $44,000 per tonne of lithium carbonate equivalent, compared with about $26,000/t for evaporation projects.

Chile’s new supply pipeline is therefore moving slowly. The first major new project, Rio Tinto’s Maricunga, is expected only by the end of 2030, with another new project expected in 2032.

Until then, Chile may rely mainly on capacity increases from existing producers. That could limit its ability to respond to rising lithium demand if Argentina’s project pipeline accelerates.

Argentina’s Rigi Regime Attracts Lithium Capital

Argentina is moving in the opposite direction. Its government has streamlined licensing and introduced the Rigi incentive regime for large investments.

Rigi provides tax exemptions, import-export benefits and legal protections for approved projects. It also allows companies to settle certain disputes in courts outside Argentina, improving investor confidence.

Ten lithium projects have already applied to Rigi, with three approved. The programme has become a major signal to international investors seeking policy stability and faster project execution.

Argentina now has more than 60 active lithium projects and seven producing assets, the most in Latin America. Two new developments are expected to come on line this year, lifting projected output to 159,000t of lithium carbonate equivalent.

That remains below Chile’s 305,000t in 2024. However, Argentina has more than 20 projects in advanced stages, including eight close to production.

Argentina’s mining ministry expects output to reach 583,000 t/yr of lithium carbonate equivalent by 2035. That would put the country in position to match or overtake Chile if Chile’s permitting regime does not change.

The investment logic is clear. Argentina offers large brine resources, a more open policy framework and exposure to western hemisphere supply chains. That combination is increasingly attractive to battery makers, automakers and mining companies.

Chile still has enormous lithium potential. But potential alone does not create supply. Without faster approvals and clearer rules, Chile risks losing regional leadership to Argentina.

For the lithium market, this shift matters. Argentina’s rise could increase competition, diversify supply and give buyers more options in South America. It could also make Latin America’s lithium growth less dependent on Chile’s policy choices.

The Metalnomist Commentary

Argentina’s lithium advantage is not only geological; it is regulatory. Chile still has world-class resources, but Argentina is turning policy speed into supply-chain momentum.

Rio Tinto Argentina Lithium Incentives Expand Fenix Growth Plan

Rio Tinto Argentina Lithium

Rio Tinto Argentina lithium incentives have strengthened again after Argentina approved the company’s $530 million expansion of the Fenix lithium project under its large-investment incentive regime. The approval marks Rio Tinto’s second lithium project accepted under Rigi, reinforcing Argentina’s role in the group’s battery materials strategy.

The Fenix expansion is expected to add 9,500 t/yr of lithium carbonate equivalent production capacity. Once completed, total output from the project is expected to reach around 41,500 t/yr.

Rio Tinto Argentina lithium incentives also support the company’s broader target to produce 200,000 t/yr of lithium carbonate equivalent by 2028. Most of that output is expected to come from Argentina, where Rio Tinto significantly expanded its position through the acquisition of Arcadium Lithium assets.

Fenix Expansion Adds Capacity to a Long-Running Lithium Asset

The Fenix project has operated in Catamarca province since 1997 and currently has nameplate capacity of 32,000 t/yr. The approved expansion adds new production to an established asset, reducing some of the execution risk compared with a fully greenfield project.

Argentina’s economy minister Luis Caputo said the new build would add $165 million to Fenix’s annual revenue from lithium carbonate equivalent sales. This gives the expansion clear commercial weight at a time when lithium producers are prioritising scale, cost control, and project discipline.

The approval also follows Rio Tinto’s earlier Rigi acceptance for Rincon. That $2.7 billion project is designed for 60,000 t/yr of lithium output and is expected to become the company’s future flagship lithium operation in Argentina.

Rigi Gives Argentina a Stronger Lithium Investment Platform

Rigi has become a central part of Argentina’s strategy to attract large-scale mining investment. The regime grants exemptions from value-added and import-export taxes, offers legal protections, and guarantees 30 years of regulatory stability.

That stability is especially important in lithium, where projects require large capital commitments, long permitting timelines, and confidence in tax and export rules. For Rio Tinto, Rigi helped support the investment case for deeper exposure to Argentina’s lithium sector.

The company’s former chief executive Jakob Stausholm said Rigi was one of the main reasons behind his confidence in acquiring Arcadium Lithium’s Argentine assets. That shows how fiscal and legal stability can directly influence global mining capital allocation.

The Metalnomist Commentary

Argentina is using Rigi to convert lithium resource potential into project commitments from major global miners. Rio Tinto’s second approval shows that policy stability can become as important as geology when battery metal producers decide where to invest.

US Tariffs May Spur Argentina Lithium Salts Production

US Tariffs

Tariff Exemptions Favor Lithium Raw Materials, Not Finished Batteries

The US has exempted lithium carbonate and lithium hydroxide from its newly announced tariffs, creating a possible boon for Argentina's lithium sector. While raw lithium salts escape extra duties, finished battery imports face steep tariffs: 64.9% for China, 24% for Japan, and 25% for South Korea.

This disparity aligns with US efforts to localize battery manufacturing, a movement accelerated by the Inflation Reduction Act under President Biden. With at least 10 new battery factories coming online in the US this year, the demand for lithium raw materials is surging.

Argentina’s Brine Lithium May Fill the US Supply Gap

The US faces a bottleneck in domestic lithium production and processing. Currently, Albemarle’s Silver Peak mine is the only active operation, producing just 5,000t/yr of technical-grade lithium carbonate, which lacks the purity needed for EV batteries.

As a result, the US will increasingly depend on lithium imports, especially battery-grade salts. Argentina, with its low-cost brine operations, may become a preferred supplier if its projects can consistently meet battery-grade specifications.

Brine operations, while slower to ramp up than hard-rock mining, are cheaper to operate and typically more cost-competitive over time. Argentina also offers a low 3% royalty tax, compared to Chile's 40% ceiling, enhancing its competitiveness.

Global Lithium Supply Chains May Shift Toward South America

Countries like Australia and Brazil, which mine spodumene, rely heavily on China for conversion, placing them in a higher tariff category. These spodumene-dependent nations now face at least 20% US tariffs due to their reliance on Chinese refining infrastructure.

Meanwhile, Argentina’s direct-to-battery-grade production strategy may give it an edge.

“All of Argentina’s lithium projects go to battery grade,” said Daniel Gonzalez, Argentina’s vice-minister of energy and mining.

If Argentina proves its capability at scale, the country could secure a dominant role in North America's clean energy transition, especially as the US reorients trade relationships in critical minerals.

The Metalnomist Commentary

With tariffs redrawing global battery supply lines, Argentina’s brine-based lithium sector is now a strategic wildcard. If proven at scale, it could shift market share away from spodumene producers tied to China—and bring Latin America deeper into the heart of US industrial planning.

Argentina Lithium Incentives Could Accelerate Pozuelos-Pastos Grandes Development

Pozuelos-Pastos Grandes

Argentina lithium incentives could support one of the country’s largest planned lithium brine developments as Ganfeng and Lithium Argentina apply for the Rigi large investment regime. The companies submitted the application after securing environmental permits for the Pozuelos-Pastos Grandes project.

The Pozuelos-Pastos Grandes project combines three brine assets under a 67-33pc joint venture between Ganfeng and Lithium Argentina. The partners plan to invest a combined $3bn to develop the operation into a major lithium carbonate equivalent producer.

Argentina lithium incentives are important because lithium projects require long development timelines, heavy infrastructure spending, and stable fiscal conditions. Rigi offers approved investors tax and royalty reductions, customs facilitation, accounting flexibility, and 30-year legal stability.

Pozuelos-Pastos Grandes Targets Large-Scale Lithium Carbonate Output

The Pozuelos-Pastos Grandes project is designed to produce 150,000 t/yr of lithium carbonate equivalent at full capacity. This would make it a major addition to Argentina’s lithium supply pipeline and strengthen the country’s position in the global battery materials chain.

The project will use a mix of evaporation and direct lithium extraction techniques. This hybrid approach reflects a broader industry trend, as developers seek to improve recovery, reduce processing bottlenecks, and manage water and environmental constraints more carefully.

Production is scheduled to start in 2029 at 25,000 t/yr. The operation is expected to reach 50,000 t/yr by 2031, then 100,000 t/yr by 2034, before ramping up to 150,000 t/yr by 2038 after two phased expansions.

Legal Stability Becomes Critical for Lithium Investment

Argentina lithium incentives could improve investor confidence at a time when lithium prices, financing conditions, and project costs remain challenging. Large brine projects need predictable rules because returns depend on multi-decade production and phased capital deployment.

The Rigi application also shows how Argentina is trying to convert its lithium resource base into industrial investment. Environmental permits give the project a regulatory foundation, while incentive approval could improve the commercial framework for construction and expansion.

For global battery supply chains, the project’s timing matters. If delivered as planned, Pozuelos-Pastos Grandes could add meaningful lithium carbonate equivalent supply during the 2030s, when EV, energy storage, and battery manufacturing demand may require more diversified sources outside current dominant supply channels.

The Metalnomist Commentary

Argentina’s lithium opportunity depends on whether policy stability can match geological potential. The Rigi framework gives projects like Pozuelos-Pastos Grandes a clearer investment case, but execution risk will remain high until financing, technology performance, and phased ramp-up are proven.

Rio Tinto's $2.5 Billion Investment Boosts Argentina's Lithium Production Capabilities

Rio Tinto Argentina's Lithium

International mining giant Rio Tinto has announced a substantial $2.5 billion investment in the expansion of its Rincon lithium operation in Argentina, aiming to increase the country's lithium production six-fold over the next decade. This move marks a significant step in Argentina's ambition to become a leading global energy supplier.

Strategic Expansion and Technological Advancements

The Rincon project, located in Salta province, commenced with a 3,000 metric tons per year starter plant in November and is Rio Tinto's inaugural commercial lithium operation. The new investment will enhance annual production to 60,000 metric tons of battery-grade lithium carbonate. Utilizing advanced direct lithium extraction (DLE) technology, the expansion is set to begin construction in mid-2025, with ramped-up production expected to start in 2028 and reach full capacity early in the next decade.

This strategic enhancement not only elevates Rio Tinto's position in the lithium market but also contributes significantly to Argentina's growing status in the global energy sector, alongside its LNG and oil exports.

Argentina's Lithium Market and Economic Reforms

Argentina currently ranks as the fourth-largest lithium producer globally, boasting substantial reserves and resources. The nation is a crucial part of the "lithium triangle," which includes neighboring Bolivia and Chile and holds about 60% of the world's lithium resources.

In support of such large-scale investments, Argentina has implemented economic reforms including the Regimen de Incentivo Grande Inversiones (RIGI), which offers tax and customs benefits, and legal stability for investments exceeding $200 million. Rio Tinto is among the companies poised to benefit from RIGI, reflecting a favorable investment environment under President Javier Milei's administration, which has also introduced sweeping tax reforms aimed at boosting economic stability and growth.

Eramet Begins Lithium Production in Argentina, Expands Global Supply

Eramet

French mining company Eramet has officially commenced lithium carbonate production at its Centenario plant in Argentina, marking a significant milestone in the global lithium supply chain. The project successfully integrates direct lithium extraction (DLE) technology, positioning Eramet as a key player in the lithium industry at a time when demand for battery-grade lithium carbonate continues to surge.

Centenario Lithium Plant: Industrial-Scale DLE Implementation

The Centenario-Ratones salar, located in Argentina, holds an estimated 15 million metric tons (mt) of lithium carbonate equivalent (LCE) in total recoverable mineral resources. With an initial production capacity of 24,000 mt per year, the plant has the potential to scale up to 75,000 mt LCE annually. The integration of direct lithium extraction (DLE) technology at an industrial scale enhances recovery efficiency and places the project within the first quartile of the lithium industry cost curve. This positions Eramet favorably against competitors in terms of production costs and long-term sustainability.

DLE technology, which allows for a more efficient and environmentally friendly lithium extraction process, is gaining traction as the industry seeks alternatives to traditional evaporation pond methods. By implementing DLE, Eramet can accelerate lithium production, reduce water consumption, and improve overall recovery rates.

Eramet Takes Full Control After Buyout of Tsingshan Stake

Eramet strengthened its hold over the Centenario project in October 2024 by acquiring the remaining 49.9% stake from Chinese steelmaker Tsingshan Holding Group for $699 million. This strategic buyout gives Eramet full ownership and operational control over the lithium operation, enabling the company to streamline decision-making and focus on long-term expansion plans.

The buyout signals Eramet’s strong commitment to lithium production, reinforcing its strategic position in the global battery supply chain. As demand for electric vehicle (EV) batteries continues to rise, Eramet's Argentina operation is expected to play a pivotal role in securing lithium supplies for global markets.

Conclusion

Eramet’s launch of lithium carbonate production at Centenario represents a major advancement in the lithium industry, particularly with its industrial-scale adoption of DLE technology. The plant’s scalability to 75,000 mt LCE annually, combined with its low-cost positioning, makes it a significant asset in the global lithium market. By regaining full ownership of the project, Eramet has reinforced its role as a leading supplier of battery-grade lithium, crucial for the future of EVs and energy storage systems.

Lithium Argentina Boosts Output as Cauchari-Olaroz Becomes Nation's Largest Producer

Cauchari-Olaroz Project

2024 Sees 25% Surge in Lithium Production Amid Soaring Global Demand

Cauchari-Olaroz Leads Argentina’s Lithium Growth

Lithium Argentina significantly increased its lithium carbonate output in 2024, positioning the Cauchari-Olaroz project as the country’s largest lithium operation. According to the company’s earnings report, Q4 production surged by 25% quarter-on-quarter, reaching 8,500 metric tonnes.

Full-year production totaled 25,400 tonnes, reflecting strong operational efficiency and rising global demand for battery-grade lithium. This growth cements the project's importance in Argentina's lithium sector, a key player in the global EV supply chain.

Revenue and Outlook Point to Continued Expansion

In 2024, Lithium Argentina generated $198 million in revenue from lithium carbonate sales, averaging $7,800 per tonne. This robust pricing reflects resilient demand despite global market volatility and softening prices in some regions.

Looking ahead, the company expects the Cauchari-Olaroz project to produce between 30,000 and 35,000 tonnes of lithium carbonate in 2025. This would mark another year of double-digit growth and reinforce Argentina's strategic role in lithium supply diversification.

Strategic Partnerships Strengthen Project Position

The ownership structure of Cauchari-Olaroz includes Ganfeng Lithium, a major Chinese lithium producer, and Argentina’s state-run mining agency JEMSE, which holds an 8.5% stake. These partnerships enhance capital access, technical know-how, and regulatory alignment in the project’s operations.

As the world pivots toward clean energy technologies, Lithium Argentina’s output growth underlines its critical contribution to the global battery value chain.

Ganfeng Launches Mariana Lithium Project, Expands Global Lithium Supply Chain

Ganfeng Lithium Project

China’s Ganfeng Accelerates Lithium Production Across Argentina, Mali, and China

Ganfeng Lithium has officially begun production at its Mariana lithium chloride plant in Argentina's Salta province, strengthening its global lithium supply network. The company launched operations on February 12, marking a significant milestone in its South American investment strategy.

The Mariana project’s first phase features an annual capacity of 20,000 tonnes of lithium chloride. Ganfeng plans to rapidly scale output upon phase completion. Its subsidiary, Litio Minera Argentina, owns 100% of the project, which holds a total lithium resource of 8.12 million tonnes of lithium carbonate equivalent (LCE).

Ganfeng Expands Global Lithium Footprint with Multi-Continent Strategy

Beyond Mariana, Ganfeng is aggressively scaling its global lithium production. In Argentina, the Cauchari-Olaroz project ramped up output from 6,000 tonnes in 2023 to 25,400 tonnes in 2024. The site targets 30,000–35,000 tonnes of lithium carbonate production in 2025. In Mali, the Goulamina spodumene mine began first-phase operations in December 2024.

In China, Ganfeng has established refining capacities totaling 50,000 t/yr for lithium carbonate and 100,000 t/yr for lithium hydroxide. The company opened a 45,000 t/yr lithium salts plant in Sichuan and launched initial production at a 25,000 t/yr lithium carbonate facility in Hunan’s Chenzhou city through its joint venture Hunan Anneng Ganfeng.

Chenzhou Mega Project Sets New Benchmark for Lithium Refining in China

Anneng Ganfeng plans to invest ¥7 billion (US$960 million) into a 150,000 t/yr lithium carbonate complex in Chenzhou. This project will roll out in three phases, with the initial 50,000 t/yr phase already under construction. These efforts solidify China’s position in downstream lithium conversion and reflect Ganfeng’s ambition to control the full value chain from resource to battery-grade materials.

Ganfeng’s total global resource investment now exceeds 79.59 million tonnes LCE. With assets in Argentina, Mali, China, Australia, Mexico, and Ireland, the firm remains a dominant force in both lithium brine and spodumene extraction.

Rio Tinto Copper Output Rises as Oyu Tolgoi Offsets Lithium Weakness

Rio Tinto

Rio Tinto copper output increased in the first quarter as stronger production from the Oyu Tolgoi mine in Mongolia lifted the group’s global copper performance. The UK-Australian miner produced 229,000t of consolidated copper in January-March, up 9% from a year earlier.

Rio Tinto copper output growth was driven mainly by copper in concentrates from Oyu Tolgoi, where production rose by 56% to 102,000t. The ramp-up helped offset weaker concentrate output at Escondida and lower refined copper production at Kennecott.

The first-quarter result shows the changing shape of Rio Tinto’s portfolio. Copper is gaining strategic weight as electrification, grids and industrial infrastructure support long-term demand, while lithium remains more exposed to weather, ramp-up timing and early-stage project execution.

At the same time, Rio Tinto reported higher alumina production but weaker bauxite and lithium output. Heavy rainfall and cyclone-related disruptions affected Australian bauxite mines, while weather events in Argentina reduced lithium carbonate equivalent production.

Copper Growth Strengthens Despite Mixed Mine Performance

Oyu Tolgoi was the strongest contributor to Rio Tinto copper output in the first quarter. Its continued ramp-up in Mongolia lifted copper in concentrates production to 102,000t, reinforcing the mine’s role as one of the group’s most important growth assets.

The result matters because large copper projects are increasingly difficult to bring into stable production. Oyu Tolgoi gives Rio Tinto a major long-life copper source at a time when global mine supply remains vulnerable to grades, permitting delays and operational disruptions.

Escondida delivered a mixed quarter. Refined copper output at the Chilean operation rose by 21% to 16,000t, but concentrates production fell by 14% to 77,000t.

Kennecott in the US was weaker. Refined copper production fell by 20% to 34,000t because of lower anode inventories after unplanned smelter maintenance and reduced concentrator throughput caused by geotechnical constraints.

Rio Tinto kept its full-year copper production guidance unchanged at 800,000-870,000t. This suggests the company sees first-quarter disruptions as manageable within its broader 2026 plan.

The company also began drilling at the Resolution Copper project in Arizona after completing the land exchange in March. Resolution remains strategically important because it could become a major US copper source if development advances.

Rio Tinto copper output therefore carries both short-term and long-term significance. Oyu Tolgoi is already lifting production, while Resolution represents future supply optionality in a market increasingly focused on domestic and allied copper sources.

Lithium Falls as Weather Disrupts Argentina Operations

Rio Tinto’s lithium performance weakened sharply in the first quarter. Attributable lithium carbonate equivalent production fell by 26% on the year to 12,700t.

The decline was caused by heavy rainfall and weather events that disrupted operations at Olaroz and Fenix in Argentina. These disruptions show that lithium brine and carbonate operations remain sensitive to weather, water balance and site logistics.

The continued ramp-up at the Rincón starter plant partly offset the production impact. Rincón is important for Rio Tinto’s lithium strategy because it supports the company’s expansion into battery materials.

Rio Tinto maintained its 2026 LCE production guidance at 61,000-64,000t. First production from Fenix 1B and Sal de Vida remains on track for the second half of 2026.

The aluminium chain also showed mixed results. Primary aluminium output rose by 1% on the year to 835,000t, but fell by 2% from the previous quarter.

Alumina production increased by 6% to 2.04mn t, while bauxite production fell by 11% to 13.28mn t. Heavy rainfall at Weipa in Queensland and cyclone-related shutdowns at Weipa and Gove reduced bauxite output.

Recycled aluminium production also fell by 8% to 61,000t. Rio Tinto kept 2026 guidance unchanged for primary aluminium, alumina and bauxite, indicating confidence in recovery through the year.

The first-quarter data show a portfolio with different operating pressures. Copper is benefiting from major mine ramp-up, lithium is facing weather disruption, and aluminium raw materials are exposed to Australian climate events.

The Metalnomist Commentary

Rio Tinto’s first quarter shows why diversified miners need both growth assets and operational resilience. Oyu Tolgoi is strengthening Rio Tinto copper output, but weather-linked lithium and bauxite disruptions show that energy-transition supply chains remain exposed to physical operating risk.

Lilac Argentina Pilot Plant Achieves 91% Lithium Recovery Rate

Lilac

Lilac Argentina pilot plant demonstrated exceptional performance with 91% lithium brine recovery using proprietary direct lithium extraction (DLE) technology in Jujuy province. The US-based Lilac Solutions' Lilac Argentina pilot plant success represents a significant breakthrough in sustainable lithium processing, achieving 99.4% overall impurity rejection while removing 99.9% of sodium, the primary contaminant in regional brine deposits.

Direct Lithium Extraction Technology Delivers Superior Performance

Lilac Argentina pilot plant operations showcase advanced DLE capabilities that eliminate traditional evaporation pond requirements. The technology enables faster and more environmentally friendly lithium processing compared to conventional methods that require extensive land use and prolonged evaporation cycles. The pilot facility mirrors future commercial-scale operations at one-third scale, providing reliable performance validation for full-scale deployment.

Meanwhile, the Argentina facility would produce 42 metric tonnes annually of lithium carbonate equivalent (LCE) if operated continuously throughout a full year. This production capacity demonstrates commercial viability while validating technical specifications for larger installations. The successful sodium removal rate addresses a critical challenge in Argentina's lithium-rich but high-impurity brine resources.

Multi-Location Strategy Validates Global Applicability

However, Lilac Solutions operates additional pilot facilities across diverse geographic locations to validate technology performance across varying brine compositions. The company maintains pilot operations in Chile and Utah, producing trial lithium quantities at both sites. This multi-location approach demonstrates DLE technology adaptability to different geological and chemical conditions.

Therefore, the global pilot program provides comprehensive data for commercial scaling while reducing technical risks associated with site-specific challenges. Each location offers unique brine characteristics that test different aspects of the DLE system's capabilities. The diverse testing environments strengthen investor confidence and support technology commercialization across international markets.

Commercial Scaling Opportunities in Lithium Markets

Furthermore, Lilac's successful Argentina demonstration positions the company advantageously within the rapidly expanding lithium market driven by electric vehicle and energy storage demand. Jujuy province hosts significant lithium resources within the broader Lithium Triangle region, creating substantial scaling opportunities for proven DLE technology. The environmental advantages of DLE align with increasingly stringent sustainability requirements from automotive manufacturers.

As a result, the 91% recovery rate achievement establishes new performance benchmarks for direct lithium extraction while addressing environmental concerns associated with traditional processing methods. Lilac's technology offers lithium producers faster project development timelines and reduced environmental footprints compared to evaporation-based alternatives increasingly challenged by water scarcity and environmental regulations.

The Metalnomist Commentary

Lilac's Argentina pilot success demonstrates how advanced direct lithium extraction technologies can overcome traditional processing limitations while meeting growing environmental sustainability requirements in lithium production. The exceptional impurity rejection rates and rapid processing capabilities position DLE as a transformative approach for unlocking previously challenging brine resources, particularly important as the industry scales to meet exponential battery demand growth.

Eramet starts DLE lithium production in Argentina

Eramet

Eramet starts DLE lithium production in Argentina and reports stable unit performance. The Centenario project reached industrial operation in June. Eramet starts DLE lithium production in Argentina to lift near-term LCE output. The company targets 4,000–7,000t in 2025 and 24,000 t/yr at nameplate.

Commissioning progress, volumes, and customers

Eramet starts DLE lithium production in Argentina through its Eramine Sudamerica JV with Tsingshan. The DLE units operated near nominal yield and throughput, the firm said. Centenario produced 710t LCE in the first half after earlier evaporation issues. However, Eramet fixed the brine concentrating equipment and restored normal operations. The company sold 520t of industrial and technical grade LCE. Most sales went to Chinese cathode active materials manufacturers.

2025 guidance and financial context

Eramet expects Centenario to deliver 4,000–7,000t LCE in 2025. The site plans a gradual ramp toward 24,000 t/yr capacity. Meanwhile, Eramine Sudamerica posted a €37mn loss in January–June. As a result, execution discipline and uptime remain critical to hit guidance. Direct lithium extraction and evaporation now run as integrated flowsheets.

The Metalnomist Commentary

Eramet’s milestone validates a second industrial DLE reference in the Lithium Triangle. Consistent brine pre-treatment and evaporation stability will determine the pace to 24kt/y. Watch impurity control and customer qualification, which shape pricing and cash flow through 2025.

Rio Tinto Rincon lithium project wins Argentina approval to scale production

Argentina Rio Tinto Mining

Argentina cleared the Rio Tinto Rincon lithium project to extract brine and produce lithium. The authorization enables the Rio Tinto Rincon lithium project to ramp toward large-scale output in Salta. As a result, the Rio Tinto Rincon lithium project advances from pilot status to a defined production pathway.

What the approval covers and the build-out timeline

Salta approved extraction and production of 50,000 t/yr of battery-grade lithium carbonate. Authorities granted permits after environmental, water, power, and indigenous consultations. Rio Tinto also benefits from Argentina’s RIGI investment incentives. The company holds clearance to start at 3,000 t/yr in 2028. Ramp-up aims to reach full capacity by 2031.

Strategic context for Argentina’s lithium supply chain

The decision positions Salta among Argentina’s leading lithium hubs. However, the project still must execute drilling, processing, and off-take steps. Meanwhile, provincial oversight and community engagement remain central. As a result, the approval de-risks schedule and financing milestones. It also signals policy support for value-added battery materials.

The Metalnomist Commentary

This approval tightens the pipeline for non-Chinese lithium supply. Watch capex discipline, brine processing yields, and ramp-up reliability. Long lead times mean pricing cycles could shift before peak output arrives.