Argentina's customs office, the Dirección General de Aduanas (DGA), has set a reference price of $53 per kg that will come into effect from Tuesday, June 7 and will apply to local lithium exports to the United States, Canada, China, Taiwan, Hong Kong, South Korea, Japan, Thailand and the Philippines.
Customs authorities in Argentina have set an official reference price for the country's exports of lithium carbonate, a move that was intended to add transparency to the government's monitoring of the sector and to the collection of royalties from local exporters.
If Argentina manages to bring all of projects to production, the country would produce up to 1.5 million metric tons of lithium carbonate equivalent per year, exporting around US$30 billion. This scenario could be achieved by 2040, according to Dreizzen's estimates.
That is more than 2.5 times annual demand for lithium-ion batteries in 2024, according to BNEF. While demand across all sectors saw year-on-year growth, the EV market – the biggest demand driver for batteries – grew more slowly than in recent years.
Two Argentine sites, Salar de Hombre de Muerto and Salar Cauchari - Olaroz, are already producing lithium hydroxide and lithium carbonate, and are among the top three with the highest lithium concentration in the region, behind Salar de Atacama in Chile. They are also among the top three with the lowest impurities.
Lithium-ion batteries are one of the most efficient energy storage devices worldwide. Over recent years, high-scale production and capital investment into the battery production process made lithium-ion battery packs cheaper and more efficient.
There are concerns about the percentages in the draft, which range from 5% to 20% of total production. The mining companies involved are against it. Another point under review is the export duties, which appear segmented in the draft: they may increase for lithium exports, but could be set at 0% for exporting ion-lithium battery cells and packs.
The Lithium Board, formed by governors, the Executive Branch, and the Economy Ministry, has agreed on a legal framework to promote industrialization. The draft was written by Casa Rosada and sent to the Economy Ministry. However, progress has stalled due to some. Sources at Casa Rosada defend the project and assure detractors that it is not similar to Chilean law, which also has domestic market quotas and, even though it doesn't include export duties, royalties can reach up to 40%. This explains why last year Chile collected. There are a few articles under “observation” by the Secretariat of Mining, which operates under Economy Minister Sergio Massa. One such article declares lithium to be of “strategic.
State company Y-TEC, the tech arm of YPF, will open the first lithium battery cell factory in September, in La Plata, the capital of Buenos Aires province. Another plant, five times bigger, will kick off in Santiago del Estero in 2024.
The plant will generate 15 megawatts per year, which means it will produce lithium batteries capable of powering 2500 households. The batteries are envisaged for use in rural areas. For example, there is already a Buenos Aires province-backed project to supply the Paulino-Berisso island, home to 70 families who are currently off the power grid.
The bill to develop the value chain of lithium and batteries, as it reads on the draft, hopes that Argentina can start by joining the industrialization of a few elements, such as cathodes and battery cells, and only then start producing batteries in the mid-term.
These are some of the findings from a report prepared by the consulting firm Aleph Energy, led by Daniel Dreizzen, which analyzes the global lithium market while delving into Argentina in greater detail. These are the 41 companies of various characteristics that participate in the country's 64 projects.
Four new projects will finally begin to churn out lithium in the weeks and months ahead, according to a yet-to-be released federal government time-line seen by Bloomberg News. That will almost double production capacity in Argentina, whose growth potential has long lured the attention of battery makers around the world.
Jose Hofer, lithium battery specialist at consultancy SC-Insights and former analyst at Chile's Ministry of Mining: “What we are witnessing today in Argentina's lithium sector is the result of three decades of consistent investment and exploration in the space.
In Buenos Aires, prices for lithium-ion batteries – the most popular choice – range from $400 to $800 per kWh installed. But why such a wide range? Let's unpack the key factors. What Drives Energy Storage Prices in Argentina?Looking for reliable energy storage solutions in Buenos Aires? This comprehensive price guide analyzes lithium-ion and lead-acid battery costs, explores market trends, and reveals how businesses can optimize energy investments. The. With Argentina's renewable energy capacity growing 58% since 2020 (see table below), storage systems have become essential for: "A typical commercial user in Palermo can save $400/month using storage systems during tariff spikes. " – Local Energy Audit Report 1. The $9,400 investment saw a 7-year ROI.
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