A new initiative between the U.S. and Argentina is meant to bolster investment opportunities and strengthen supply chains for critical minerals that could be used in the clean energy transition, such as copper and lithium.
The Andes-Atlantic Corridor, announced Sept. 23, will make it easier to funnel U.S. investment into Argentina’s mining sector and to export critical minerals.
At the same time, the initiative will help continue to develop the Vaca Muerta region, home to Argentina’s largest oil and gas reserves.
“Working together, the United States and Argentina seek to continue to build on our robust relationship through increased U.S. investment, close security cooperation, and aligned values,” the two countries said in a joint statement.
Argentina has about 117.91 million metric tons of copper reserves and 216.32 million metric tons of lithium carbonate equivalent, the chemical used in lithium-ion batteries. Many of the country’s minerals are needed for building the cables and transformers in power grids, wind turbines and solar panels, among other things.
The country is also part of the “Lithium Triangle,” alongside Chile and Bolivia, an approximately 400,000-square-kilometer (154,400-square-mile) stretch of salt flats where 40-60% of the world’s lithium is located.
Historically, exporting minerals has been a challenge for Argentina. The closure of a major copper mine and a lack of foreign investment, among other economic troubles in the country, saw copper exports drop between 2012 and 2019, according to an analysis by the Payne Institute for Public Policy, a U.S.-based think tank studying energy, natural resources, and the environment.
Under the new initiative, the two governments will work to reduce transportation and energy bottlenecks between mining areas and ports on the Atlantic and the Hidrovía Waterway, the system of rivers through Paraguay where around 80% of Argentina’s exports travel.
In June, Argentina awarded a 25-year concession to Belgian-Argentine consortium Vía Navegable Troncal to optimize those river trading routes. The concession is expected to bring $10 billion in investment, reduce shipping costs, and increase trade flows, according to the U.S. statement.
In the energy sector, the initiative includes strengthening cooperation around Argentina’s oil and gas sector, using U.S. investment and technology, as well as direct loans and other financial instruments that can accelerate the use of capital and equipment.
In a separate framework signed the same day, Argentina and the Export-Import Bank of the U.S. (EXIM), the official U.S. export credit agency, agreed to mobilize up to $7 billion for mining, energy and other sectors through 2027.
“We must secure our supply chains, support American jobs, and ensure American workers, products, and expertise reach all parts of the Western Hemisphere,” EXIM chair John Jovanovic said in an agency statement. “We’re proud to enter into such an important partnership with Argentina and excited to see our two countries grow together.”
Banner image: The Salinas Grandes salt flats in Jujuy, Argentina. Image by Rodrigo Abd/AP Photo.
