South America

Argentina: Critical Minerals Profile

Rapidly expanding lithium producer in South America's Lithium Triangle attracting major international investment.

lithium copper silver gold boron zinc

Overview

Argentina has rapidly emerged as one of the world's most dynamic lithium development destinations, attracting billions of dollars in investment for brine-based lithium extraction projects in the northwestern provinces of Jujuy, Salta, and Catamarca. The country forms the southeastern corner of South America's Lithium Triangle and benefits from large, high-concentration lithium brine deposits, a relatively favorable investment climate compared to neighboring Bolivia, and established mining legislation that provides security of tenure. Major lithium producers operating in Argentina include Livent (now part of Arcadium Lithium), Allkem, and numerous junior companies developing new projects. Argentina's lithium production has grown significantly and the country is positioned to become a top-five global producer as multiple projects under construction reach full capacity. Beyond lithium, Argentina holds substantial copper deposits in the Andean provinces, with major projects including MARA, Josemaria, and Los Azules attracting significant investment.

Key Minerals and Resources

Argentina's critical mineral profile is defined by its endowment of lithium, copper, silver, gold, boron, and zinc. These minerals position the country as a significant global supplier in supply chains spanning the energy transition, advanced manufacturing, and defense sectors.

lithium
copper
silver
gold
boron
zinc

Mining and Production

Argentina's mining sector has grown significantly in recent years, driven primarily by lithium investment and renewed interest in Andean copper deposits. The country's established lithium operations include the Olaroz and Cauchari-Olaroz projects in Jujuy province, operated by Allkem (now Arcadium Lithium) and Ganfeng Lithium/Lithium Americas respectively, and the Fenix operation in Catamarca operated by Livent/Arcadium. Numerous additional lithium brine projects are under construction or in advanced development, with total investment commitments exceeding several billion dollars. Argentina's mining regulatory framework is federalized, with individual provinces controlling mining concessions and fiscal terms, creating variability in investment conditions across the country. The Salta, Jujuy, and Catamarca provinces have been most proactive in attracting lithium investment, while San Juan and Mendoza host significant copper and gold exploration projects.

Policy and Regulation

Argentina's mining regulatory framework is federalized under the national Mining Code, with individual provinces exercising significant control over mining concessions, environmental regulation, and fiscal terms. This federal structure creates variability in investment conditions, with some provinces offering competitive terms and streamlined permitting while others maintain more restrictive frameworks or have imposed limitations on mining activity. At the national level, Argentina has maintained a generally pro-mining policy orientation, with incentives including stability guarantees for major investments and competitive royalty rates. The country has signed critical mineral agreements with the United States, European Union, and other partners. However, Argentina's broader macroeconomic environment, including currency controls, inflation, and periodic changes in export tax regimes, creates financial complexity for mining investments.

International Partnerships

Argentina has attracted critical mineral partnerships from a wide range of international partners, reflecting the country's open investment framework for mining and its growing lithium production. The country has signed mineral cooperation agreements with the United States, the European Union, Japan, and other consuming nations. Argentina is a participant in the Minerals Security Partnership discussions and has been identified as a priority lithium source for Western supply chain diversification. Australian, Canadian, Chinese, Japanese, and South Korean companies all hold significant mining investments in Argentina. The country's lithium partnerships are particularly dynamic, with investment flowing from virtually every major battery-producing nation seeking to secure raw material supply.

Supply Chain Role

Argentina plays a specialized role in global critical mineral supply chains, contributing specific minerals that, while not always produced in the largest volumes, are essential for particular industries or serve as important diversification sources for consuming nations seeking to reduce supply concentration risks. The country's mineral exports enter complex global trading networks that ultimately feed into manufacturing supply chains for batteries, electronics, vehicles, aerospace systems, and other critical applications. Argentina's strategic significance may increase as the global demand for critical minerals grows and consuming nations place greater emphasis on supply diversification and security of supply.