Argentina approves one of the biggest lithium mining projects in the country
Argentina’s government approved the lithium mining project Rincón, which is set to become one of the largest projects in the country. This project, alongside the existing ones and the one under construction, could make the South American country the second-largest lithium producer.
The approved project is the Rincon mine, developed by the multinational Rio Tinto, and was accepted under a new investment incentive regime, known as RIGI. According to the company, the investment for this mining site will be around $2.7 billion and could be in production from 2031 onward.
This mine is set to produce 60,000 tonnes of battery-grade lithium every year, one of the biggest projects in the country. The project will join 10 other projects under operation and is one of the 60 in development in the South American country.
In 2024, Argentina produced 74,600 tonnes of lithium carbonate equivalent (LCE) and expects to break export records in 2025. With the advanced state of the different mines, the country could become the second-largest producer after Australia. This country has the largest aggregate lithium reserves and resources at 67.7 million metric tons, according to S&P Global Market Intelligence data.
In past years, the demand for lithium has increased, driven by the electric vehicle (EV) industry and energy storage systems. This gains relevance as the International Energy Agency (IEA) estimates a 40% gap in the lithium supply by 2035.
