Together with Chile and Bolivia, Argentina forms part of the “lithium triangle,” which holds more than 60% of the world’s reserves, and aims to become the world’s second-largest producer within the next decade. File Photo by Andre Coelho/EPA
Amid a global shift toward electric mobility, Argentina is working to strengthen its position as one of the world’s leading lithium suppliers. The so-called “white gold” is a key mineral in electric vehicle batteries, and demand has surged in recent years.
Together with Chile and Bolivia, Argentina forms part of the “lithium triangle,” which holds more than 60% of the world’s reserves, and aims to become the world’s second-largest producer within the next decade.
According to a recent report from the Secretariat of Mining, the country holds 20% of global lithium resources and 13.3% of known reserves. It accounts for more than 11% of global lithium exploration spending and has multiple projects in operation or in advanced stages of development.
In 2024, Argentina produced 74,000 metric tons of lithium carbonate equivalent and expects to reach 130,000 tons in 2025 — a 75% increase. Exports from the sector totaled $645 million last year and are projected to grow by more than 30% in 2025, driven by the Incentive Regime for Large Investments, or RIGI.
“Countries with lithium reserves and production capacity are competing to position themselves as strategic suppliers for technology companies in Asia, Europe and North America,” economist Erika Mildre of fintech firm Inversiones Andinas told UPI.
She added that the challenge “is to turn the lithium boom into productive development, jobs and higher tax revenue.”
Argentina ranks as the world’s fifth-largest lithium producer, with six projects in operation and another 41 in advanced stages of development. Mildre noted that if current investment commitments are fulfilled, Argentina could surpass Chile within the next decade and become the world’s second-largest producer.
“It’s not enough to attract capital. I’s also essential to build long-term investor confidence,” she said. In her view, the main challenge will be turning the lithium boom into a structural driver of development that translates into higher exports, tax revenue, large-scale production and jobs.
In that context, RIGI seeks to attract investments that exceed $200 million, offering exchange-rate stability and free access to foreign currency — two conditions highly valued by international investors.
“The regime provides predictability and removes the main barrier perceived by foreign investors,” economist Bautista Barisban of Inversiones Andinas told UPI.
This framework is complemented by closer ties between Buenos Aires and Washington after passage of the U.S. Inflation Reduction Act, which allocates $400 billion to clean energy and has increased demand for lithium.
Although the law benefits only countries with free-trade agreements, Argentina is seeking inclusion through a Memorandum of Understanding on Critical Minerals signed in 2022.
The combination of the RIGI program and the bilateral agreement could strengthen Argentina’s position as a strategic lithium supplier and attract new investment. Still, not everyone is optimistic.
“Argentina has spent decades projecting itself as the world’s second-largest producer. Those projections have never materialized,” a researcher with the R&D Projects Department at InnovaT, Federico Nacif, told UPI via email.
He noted that Argentina’s lithium regime is highly deregulated, unlike those of Chile and other countries.
“Any private company, domestic or foreign, can buy and sell lithium mining concessions. In Chile, that’s not allowed because it’s considered a strategic resource,” he said.
“In Argentina, concessions are perpetual and unconditional. They can be bought, sold or used as collateral. That creates a major speculative market, especially when prices rise.”
He said the country’s current mining investment law is already highly favorable: 30 years of fiscal stability regardless of capital origin, broad tax exemptions and limits on royalty payments.
“It’s the most favorable law in the region, yet it hasn’t generated truly productive investment. Since the RIGI was announced, only two projects have joined: Salar Hombre Muerto (Galan Lithium) and Salar del Rincón (Rio Tinto). Both had already been under construction for years,” he wrote.
