The prices of the lithium suffered a sharp drop at international level and there is concern in the national mining industry that works in the extraction. Currently, one tonne of lithium carbonate equivalent (LCE) It is quoted at 10,483 dollarsless than a third of what it was worth a year ago and far from the peak of $80,909 recorded in November 2022.
However, several mining companies decided to adjust their projects in the country in the face of a stabilization of the market. Of the 50 active lithium projects in Argentina – only four are in production and six are under construction – were impacted by the drastic reduction in the value of lithium.
The fall in prices is mainly due to a glut already the Moderation in sales of electric vehicleswhose production depends heavily on lithium for batteries.
Given this adverse scenario for the lithium industry, Mining companies began to implement cost reduction strategies to ensure the viability of their projects.
There is confidence in a recovery in lithium prices
Despite the current difficult context, companies in the sector remain optimistic about the long term. Paul Graves, President and CEO of Arcadium Lithiumtold the EFE news agency that he expects a “strong long-term growth trajectory for lithium demand” and anticipates that, over time, the market will return to healthier fundamentals.
Fernando Zevallos Sulca, senior analyst at CRU, said that the robust investments in Argentina, although facing delays, will not be cancelled. According to his estimates, Lithium production in Argentina could compete with that of Chile in the next decadeas long as the current projects obtain adequate financing.
RIGI: The Government seeks to boost investments in lithium
Argentina is one of the main destinations for lithium investments, as it offers significant geological benefits. In addition, the Government hopes that, as a result of the new Large Investment Incentive Regime (RIGI), new people will be interested in the mineral.
This regime offers tax, customs and exchange benefits, with the aim of attracting foreign capital and promoting the development of strategic sectors such as lithium.
Source: Ambito
