Argentina Joins US-Led Initiative to Boost Critical Minerals Investment
Argentina is set to join a US-led initiative designed to attract investment in critical minerals mining, according to a State Department official. This move aims to establish supply chains for essential metals that bypass China. President Javier Milei’s administration will officially announce its participation in the Minerals Security Partnership during a visit by US Under Secretary of State Jose Fernandez.
Argentina is rich in copper and lithium resources but has only begun to exploit a small fraction of them. The partnership currently includes 14 countries and the European Union and seeks to reduce reliance on China for minerals used in electric vehicle batteries and solar panels. The initiative aims to connect foreign investors with mining projects while adhering to strict environmental regulations.
“It’s an opportunity for Argentina to present its case to 14 countries and the EU simultaneously,” Fernandez stated in an interview. He emphasized the need for investments that would benefit local communities and foster growth while respecting national laws.
Launched in 2022, the US-led minerals partnership has facilitated high-level discussions but has yet to yield significant investments. While Milei is committed to strengthening ties with Washington, distancing Argentina from China, its largest trading partner after Brazil, will be challenging.
Prior to the announcement, the State Department invited participants to an event in Buenos Aires on August 23 to explore opportunities in lithium and copper extraction in Argentina. The department highlighted the country as a potential leader in resource development, noting numerous investment opportunities across various provinces.
However, the minerals agreement does not resolve Argentina’s current ineligibility for incentives related to lithium production under the US Inflation Reduction Act of 2022, which aims to accelerate electric vehicle adoption. Argentina is excluded from these benefits due to the absence of a free-trade agreement with the US, and Argentine officials are actively seeking access to these incentives.
