Argentina says Chinese miner latest to bet big on lithium riches (updated)

Allkem

31/05/2023 21:12

(Adds details on lithium projects, expected output growth)
    By Lucila Sigal
       BUENOS AIRES, May 31 (Reuters) - Chinese miner Tibet
Summit Resources will invest $1.7 billion to develop two lithium
projects in Argentina, the economy ministry said on Wednesday,
as the South American country eyes burgeoning demand for the
metal used in rechargeable batteries.
    The projects in the Arizaro and Diablillos salt flats in
Salta province are expected to produce 50,000-100,000 tonnes of
lithium, the ministry noted in a statement, without elaborating
or saying when they would come online.
    Tibet Summit did not immediately respond to a request for
comment.
    Argentina is the world's fourth largest producer of lithium,
an ultra-light metal in high demand from makers of electric
vehicles.
    "We want a mining industry that takes advantage of our
resources and generates added value and employment," said
Economy Minister Sergio Massa in the statement.
    Massa is visiting China, where he met with executives from
Tibet Summit.
    Last year, Argentina exported around 40,000 tonnes of
lithium carbonate, a processed product used in lithium-ion
batteries. The country's growing lithium sector expects to
triple shipments in the next few years.
        The growth is expected largely due to two lithium
projects ramping up production in Jujuy province in Argentina's
arid northwest. One is operated by U.S.-based Livent Corp
 LTHM.N  in Catamarca province and the other by Australia's
Allkem  AKE.AX .
  
    The two companies expect to double their current output to
about 42,500 tonnes of lithium carbonate each in the next few
years, government data show.
        Another major lithium project, Cauchari-Olaroz, is
expected to come online in June, operated by local firm Exar,
which is run by Canada's Lithium Americas Corp  LAC.TO , China's
Ganfeng Lithium  002460.SZ  and state producer JEMSE.
  
        Exar expects to ramp up lithium carbonate production to
around 40,000 tonnes annually beginning next year.
  

 (Reporting by Lucila Sigal; Editing by David Alire Garcia and
Richard Chang)
 ((Valentine.Hilaire@thomsonreuters.com;))