Argentina has positioned itself as one of the largest producers of lithium worldwide, thanks to its vast salt flats in the Andes region, which are home to huge reserves of this essential mineral for the manufacture of rechargeable batteries. In particular, the province of Jujuy, which is part of the so-called “Lithium Triangle” (along with Chile and Bolivia), has become a strategic hub for lithium extraction, benefiting from the growing demand for electric vehicles and energy storage solutions.
One of the most prominent projects is the Olaroz Project, operated by Sales de Jujuy, a joint venture between Canada’s Lithium Americas and China’s Ganfeng Lithium. This project has been key in the development of lithium mining in Argentina, with a production capacity that is constantly expanding. Lithium extraction in the Olaroz region is particularly efficient thanks to favourable geological conditions, which allow a solar evaporation process to obtain the ore. Not only is this method economical, but it also has a reduced environmental impact compared to other extraction techniques.
The growing demand for lithium driven by the transition to electric vehicles and clean energy represents a significant opportunity for Argentina, which is set to be a key supplier of lithium globally in the coming years. Investors, both local and international, continue to see huge potential in Argentina’s lithium projects due to their strategic location and competitive advantages in terms of production costs.
Sources: Sales de Jujuy, Lithium Americas, Ganfeng Lithium, World Lithium Association.
Despite the enormous opportunities offered by this resource, lithium mining in Argentina is not without its challenges. The main concern remains the use of water, an extremely scarce resource in the region. In this context, the Argentine government has begun to implement a stricter regulatory framework to ensure that mining projects are sustainable and respect the demands of local communities, especially in indigenous areas where mining could lead to social tensions.
