Argentina official says lithium, copper to drive metal exports to $10 billion by 2027

Argentina’s mining exports will more than double to around $10 billion in 2027 from some $4 billion this year, the country’s Mining Secretary Luis Lucero told Reuters, driven by a spate of lithium projects coming online and a nascent push into copper.

In his first comments to international media since taking office in April, Lucero said electric battery metal lithium would be the key driver of the mining export boom, with a batch of projects set to go into production later this year.

The South American nation is making an aggressive push to cement itself as a key supplier of lithium and copper, both vital for the global drive to build renewable energy to power electric vehicles and artificial intelligence.

An effort to restart copper output, luring majors such as BHP, Glencore, Lundin Mining, First Quantum, and others, will also boost exports when a promising pipeline of projects goes online in coming years.

“Argentina has an important window of opportunity with lithium and copper to be a supplier in the international trade of these metals,” Lucero said in written responses to Reuters.

Argentina’s government under libertarian President Javier Milei is making a major pro-business push on mining, hoping to pull the economy out of recession after years of debt, currency and inflation crises.

The country is already the world’s No. 4 producer of lithium and is looking to catch larger producers Chile and China.

Lucero said Argentina may be able to hit annual capacity of 200,000 tons of lithium carbonate equivalent (LCE) by the end of next year or early 2026, up from just under 140,000 tons now. This would beat some previous government forecasts.

“This would get us closer to third place among lithium producing countries,” Lucero said, adding Argentina could get to 250,000 tons in the coming years. “With these production levels, lithium would become the country’s main mineral export.”

A still-swirling economic crisis remains a major obstacle with annual inflation above 200%, tough capital controls and a deepening recession, but Milei’s government has won backing from markets and business with incentive measures for big investment.

Lucero said the new measures, known by the Spanish acronym “RIGI”, include tax breaks and better access to foreign currency for large projects. He said this would help bring an “influx of new investment”.

He added key lithium projects needed capital expenditure over $8 billion to get up and running, while the main copper projects need some $20 billion. He cited “major challenges” of improving energy infrastructure and road connectivity.

The mining secretary added that the government was looking to extend the useful life of mature but declining silver and gold mines, previously the main mining driver, while there was also “smaller investments in exploration and expansion.”

Source: Reuters

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