Dynamics: Argentina's lithium carbonate production capacity doubles in two years, expected to soar to become the world's third-largest lithium producer

Dynamics: Argentina's lithium carbonate production capacity doubles in two years, expected to soar to become the world's third-largest lithium producer

Lithium is a key raw material for electric vehicle batteries and is known as the 'white oil'. The global transition to clean energy has significantly boosted lithium demand and sparked a wave of lithium mining frenzy.

Argentina is currently the fourth largest lithium producer in the world, following Australia, Chile, and China. The country's goal is to leap to become the world's third-largest lithium producer. Considering that Argentina's position in lithium production is steadily increasing, this goal is not unrealistic.

The Argentine Association of Mining Entrepreneurs (CAEM) reported on Tuesday that, driven by new projects, Argentina's lithium carbonate equivalent (LCE) production capacity has doubled in the past two years.

According to the association, the LCE production capacity in Argentina has significantly increased from 37500 tons in 2022 to 136500 tons.

There are currently four new lithium mining projects in Argentina that have been put into operation or are about to be put into operation, including the Centenario Ratones factory located in the Salta province. The factory is a joint venture between Eramet, the largest mining group in France, and Tsingshan, the largest mining group in China.

The Centenario Ratones factory started production at the beginning of this month, with the goal of producing 24000 tons of LCE annually by 2025.

The production of this factory will help narrow the gap between Argentina and neighboring Chile, which is currently the largest lithium producer in Latin America. Argentina, Chile, and Bolivia are known as the South American 'lithium triangle'. These three countries account for over half of the world's lithium resources.

In addition to Centenario Ratones, the other three projects are Tres Quebradas from Zijin Mining, Mariana from Ganfeng Lithium, and Sal de Oro from South Korean steel giant Pohang Holdings.

Prior to the release of the aforementioned report, a government report in early July indicated that Argentina's total lithium production is expected to double in the coming months as new projects enter the production phase.