Allkem, set for merger, talks up Argentina's 'enormous' lithium riches

Allkem

23/05/2023 18:36

By Lucila Sigal
       BUENOS AIRES, May 23 (Reuters) - Australian-based
lithium miner Allkem Ltd  AKE.AX , set for a $10.6 billion
merger with U.S.-based Livent Corp  LTHM.N , sees "enormous"
opportunity in Argentina, a top executive said on Tuesday.
    Speaking at a mining event in Buenos Aires, Chief
Sustainability and External Affairs Officer Karen Vizental said
Argentina's strong pipeline of lithium projects could lure
billion of dollars in investment by the end of the decade, while
the country's lithium exports could rise to $10 billion.
    "The size of the opportunity, if we look forward to 2030, is
enormous," Vizental said.
    "We have a range of projects that are in different stages,
of feasibility or exploration. If these projects end up being
completed, we are talking about investment over $7 billion."
    Argentina, the No. 4 lithium producer globally, sits within
the so-called "lithium triangle" and has been luring investment.
Allkem and Livent run the two projects currently in production,
but a pipeline of others is set to come online.
    The two firms announced a planned merger this month, a deal
which would create the world's third-largest producer of the
metal used to make electric vehicle batteries needed by
carmakers from Tesla Inc  TSLA.O  to BMW  BMWG.DE .
    Vizental said the merger, which she hoped would be completed
by the end of November, would bring benefits of "scale", more
exchange of technology and innovation, and speed up investment.
    "It is extremely positive for the projects we have here in
Argentina," she said.
    Argentina has benefited, analysts say, from a decentralized
and market-led model, even as others in the region including
Bolivia, Mexico and recently Chile, have touted more state-led
development and even the idea of an OPEC-style lithium cartel.
    "I don't agree with the idea of an OPEC for lithium,"
Gerardo Morales, the governor of northern mining province Jujuy,
said at the Arminera mining conference. Other governors from key
lithium regions Catamarca and Salta said the same.
    Argentina, Bolivia and Chile together sit atop of half the
world's lithium riches, under salt flats in the high Andean
plains. Chile, the world's No. 2 producer, unveiled plans for a
state-led public-private lithium strategy last month.
    "They are going backwards," Morales said of Chile. "And
Bolivia too. That means more investment for us."


 (Reporting by Lucila Sigal; Editing by Adam Jourdan and
Marguerita Choy)
 ((adam.jourdan@thomsonreuters.com; +54 1155446882; Reuters
Messaging: adam.jourdan.thomsonreuters.com@reuters.net))