Wed Sep 11 03:58:01 UTC 2024: ## Argentina’s Lithium Production Soars Despite Price Slump, Investment Remains Strong

**Buenos Aires, Argentina** – Lithium production in Argentina surged 56.7% in July 2024 compared to the same month last year, reaching over 4,991 tons of lithium carbonate, according to data from the national statistics bureau INDEC. This growth, although significant, marked a slowdown from the staggering 128.2% increase witnessed in June.

Despite this robust production, the industry is grappling with a decline in international lithium prices, currently hovering around US$10,483 per tonne of lithium carbonate equivalent (LCE). This drop, attributed to an excess of supply and reduced demand for electric vehicles globally, has prompted mining companies to implement cost-cutting measures to maintain project viability.

However, the Argentine government remains optimistic about the sector’s future, citing the relatively small size of the lithium market, which makes it susceptible to price fluctuations. Economists predict prices will stabilize and reach an average of US$20,800 per tonne between 2025 and 2027.

Investment in lithium projects continues unabated, with South Korea’s Posco committing US$2 billion to the Hombre Muerto salt flat in Salta province. French company Eramine Sudamérica, in partnership with Chinese Tsingshan, is set to launch the first lithium mine in the Centenario-Ratones salt flat, with plans for a second facility requiring an additional US$800 million. Chinese battery giant Ganfeng is also eyeing a US$1 billion investment for its Mariana project in the Llullaillaco salt flat.

Cabinet Chief Guillermo Francos projects that the completion of these projects will inject approximately US$47.1 billion into the Argentine economy over the next few years, solidifying the nation’s position as a major global lithium producer. By late 2024, total lithium carbonate production is expected to exceed 80,000 tons, a substantial leap from the 44,000 tons produced in 2023.

Despite the current price challenges, Argentina remains confident in its lithium sector’s long-term prospects, driven by continued investment and the potential for significant economic contributions in the years to come.

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