Lithium manufacturing in Argentina rose 56.7 p.c in July 2024 in contrast with the identical month final 12 months, in keeping with information posted by the INDEC nationwide statistics bureau.
Greater than 4991 tons of lithium carbonate have been produced, in keeping with INDEC’s IPIM (Mining Industrial Manufacturing Index) measurement.
Within the first seven months of the 12 months, whole manufacturing elevated 62.3 p.c in comparison with the identical interval of 2023. However whereas the expansion stays appreciable, July’s enchancment didn’t match the staggering 128.2 p.c year-on–12 months enhance recorded in June.
Regardless of the expansion, trade consultants are intently watching the decline of worldwide lithium costs, which presently stand at US$10,483 per tonne of lithium carbonate equal (LCE) – properly under the US$80,909 seen in November 2022.
The drop in costs might be defined by an extra of provide and decrease demand for electrical vehicles on a world scale – one of many primary makes use of of the mineral is for battery manufacturing. The elimination of subsidies aiding the acquisition of electrical vehicles in China has additionally contributed to the market contraction.
Confronted with the brand new state of affairs, mining firms have begun to use price discount methods to take care of the viability of lithium tasks.
Argentina’s authorities, nevertheless, stays assured that prospects will enhance within the coming years.
A latest report by economist Maximiliano Ramírez, macroeconomic programming undersecretary on the Financial system Ministry, noticed that the lithium market is small in contrast with that of different metals, which makes it delicate to abrupt value variations.
The specialist tasks that costs will stabilise and attain a median of US$20.800 per tonne between 2025 and 2027.
President Javier Milei’s authorities and several other overseas mining firms preserve excessive expectations for the sector. Funding in lithium tasks continues in Argentina, most just lately with the information that South Korean firm Posco will make investments US$2 billion within the Hombre Muerto salt flat, positioned within the northern province of Salta.
French firm Eramine Sudamérica, in partnership with Chinese language Tsingshan, will quickly open the primary lithium mine within the Centenario-Ratones salt flat and is planning a second facility with an extra funding of US$800 million.
Chinese language firm Ganfeng, a pacesetter in battery manufacturing, can also be sizing up a US$1-billion funding for its Mariana mission within the Llullaillaco salt flat.
Cupboard Chief Guillermo Francos stated in a latest Congress look that the completion of lithium tasks will inject round US$47.1 billion into Argentina’s financial system over the following few years, consolidating the nation’s place as one of many high worldwide lithium producers.
By late 2024, whole manufacturing of lithium carbonate in Argentina is anticipated to be in extra of 80,000 tons, which might be a big leap from the 44,000 tonnes produced final 12 months.
– TIMES/NA