Argentina and the US sign an agreement on “critical” minerals such as lithium

Buenos Aires. Argentina and the United States signed a memorandum of understanding (MoU) in Buenos Aires on Thursday to strengthen the production of “critical minerals” essential for the energy transition, including lithium, of which the South American country has the third largest reserve in the world.

The agreement “aims to promote investments in exploration, extraction, processing and refining, and recycling and recovery of critical minerals, through cooperation between the parties, in particular financial and technical assistance for their development,” the Argentine Foreign Ministry said in a statement.

The document was signed by the Argentine Minister of Foreign Affairs, Diana Mondino, and the US Undersecretary for Economic Growth, Energy and Environment of the State Department, José Fernández, who is on a regional tour.

“By signing this Memorandum, the United States and Argentina are advancing their common interest in supporting the energy transition and deploying clean energy technologies,” the U.S. government said in a separate press release.

The United States has already signed a Memorandum of Understanding on the production of these minerals, which also include nickel and cobalt, with other countries in the region such as Peru and Chile. The latter is part, along with Bolivia and Argentina, of the “lithium triangle”, an area that could contain more than half of the world’s reserves of this element, according to experts.

In 2023, Argentina will be the world’s fourth largest producer of the metal – behind Australia, Chile and China – thanks to the fact that it has the third largest reserves in the world, according to data from the United States Geological Survey.

An essential element for the energy transition, lithium is key in the batteries of electric cars or smartphones.

In this regard, the Argentine Foreign Ministry stressed the importance of continuing to be “a reliable provider of strategic resources” and stated that it hopes to “continue collaborating with the United States in order to ensure the supply of key minerals.”