Argentina Aims to Double Mining Exports to $10 Billion with Focus on Lithium and Copper

Argentina’s mining exports are expected to double to approximately $10 billion within the next three years, driven primarily by a surge in lithium production, according to Minister Luis Lucero. The expansion is also set to benefit from increased copper production, which is critical for powering electric vehicles and artificial intelligence technologies.

Lucero emphasized that Argentina is making a significant push to position itself as a global supplier of lithium and copper, with several major projects set to commence later this year. These projects are backed by mining giants such as BHP, Glencore, Lundin Mining, and First Quantum, all committed to boosting Argentina’s exports in the coming years. Currently, Argentina’s mining exports stand at around $4 billion.

Under the pro-business policies of libertarian President Javier Milei, the Argentine government is focusing on revitalizing the mining sector to help pull the economy out of a prolonged recession marked by debt, currency instability, and inflation crises. Argentina is already among the world’s top lithium producers and is aiming to catch up with larger producers like Chile and China.

Lucero projected that Argentina could reach an 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 currently. This would surpass some earlier government forecasts and bring Argentina closer to becoming the third-largest lithium producer globally. He added that the country could eventually reach 250,000 tons in the coming years, making lithium Argentina’s leading mineral export.

However, the country still faces significant challenges due to years of economic mismanagement, including a severe recession and weakened consumer demand. Despite these obstacles, the Milei administration has garnered support from markets and businesses, thanks to incentive measures designed to attract large foreign investments. Public opinion polls suggest that while support for these measures is waning, many Argentinians are still backing the government’s economic strategies.

One of the key initiatives introduced by Minister Lucero is the “Incentive Regime for Large Investments” (RIGI), which offers tax breaks and improved access to foreign currency for major projects. Lucero believes these incentives will lead to an influx of new investment in Argentina’s mining sector.

Lucero estimated that key lithium projects will require over $8 billion in capital expenditure to become operational, while major copper projects will need around $20 billion. He also acknowledged the need to address “major challenges,” such as enhancing energy infrastructure and road connectivity, to fully realize the sector’s potential.