China's Lithium Rush: $3.4 Billion Invested in Seven Argentine Projects

Chinese companies are pouring billions of dollars into Argentina's lithium industry, with a total of seven projects under development across the provinces of Jujuy, Salta, and Catamarca, according to a recent report by the Bolsa de Comercio de Rosario (BCR).

The report estimates a combined investment of $3.383 billion from Chinese companies, highlighting the nation's growing interest in the "white gold."

The report details a range of projects, from those already in production to those in early exploration stages. One of the most notable projects is the Caucharí-Olaroz project in Jujuy, a joint venture between Chinese, Canadian, and Argentine companies, which began production in June 2023.

The project, with an estimated investment of $979 million, has a production capacity of 40,000 tons of battery-grade lithium carbonate per year.

These investments are timely, given the global shift towards electric vehicles and renewable energy. Argentina, along with Chile and Bolivia, forms part of the "Lithium Triangle," which holds about 60% of the world's lithium resources.

"Developing the lithium industry in Argentina is appropriate, taking advantage of the global context of the proliferation of electric cars, the growth of lithium batteries in mobile phones, and the general global initiative to seek alternative energy sources to traditional fossil fuels," the BCR report states.