On Thursday, under the U.S.-Argentina Energy Security Dialogue framework, U.S. Under Secretary of State for Economic Growth, Energy, and the Environment, Jose W. Fernandez, and Argentine Foreign Minister Diana Mondino signed a Memorandum of Understanding (MOU) to strengthen cooperation between the U.S. and Argentina on critical minerals. The signing ceremony took place in Buenos Aires, where Under Secretary Fernandez and Foreign Minister Mondino conducted bilateral talks.
Amid the global trend toward a clean energy transition, minerals widely used in electric vehicle batteries and solar panels, such as lithium, cobalt, nickel, and manganese, have become strategic resources sought after by major powers.
Argentina possesses abundant copper and lithium resources, with only a small portion currently being extracted. According to the U.S. State Department, Argentina is currently the fourth largest lithium producer globally and is one of the leading countries in developing new copper resources, with numerous lithium and copper projects available for investment across several provinces.
In October 2023, Mr. Nikolaos Cacos, President, CEO, and Director of Argentina Lithium & Energy Corp. (TSXV: LIT, OTC: PNXLF, FSE: OAY3), stated in an interview with “METALS 100” that the company secured a $90 million investment from the world-leading automaker Stellantis, which will accelerate their exploration plans. The management team of Argentina Lithium & Energy has a long history of success in Argentina’s resource sector, responsible for acquiring and advancing some of the best lithium properties in the “Lithium Triangle.”
The MOU demonstrates the determination of the U.S. and Argentine governments to enhance cooperation in critical mineral supply chains and promote trade and investment in the exploration, extraction, processing, refining, recycling, and recovery of critical mineral resources. This memorandum sets the direction for further collaboration on governance, investment, and global supply chain security in the critical mineral resource sector. By signing this MOU, the United States and Argentina advance their shared interest in supporting the energy transition and deploying clean energy technologies.
To reduce reliance on China, the U.S. has been actively adjusting its critical metals supply chain. In June 2022, the U.S. government led the establishment of the “Minerals Security Partnership” (MSP), an alliance aimed at stimulating governmental and private sector investment in minerals. This alliance includes 14 countries such as Australia, Canada, Japan, and South Korea, along with the European Union.
Meanwhile, Chinese companies are also expanding their influence in Latin America. Argentine President Javier Milei has stated that China’s investment and trade are crucial to Argentina’s future. China is Argentina’s second-largest trading partner, and over the past 20 years, Argentina’s exports to China have increased sevenfold as China invests in sectors such as mining, oil and gas, finance, and construction.
