LITHIUM M&A PROJECTS IN ARGENTINA
Not so many years ago, lithium was a niche mineral mainly used to produce glass, ceramics, drugs (Prozac) and lubricants and most part of the global demand was sourced from wellestablished mines and brine lakes in Chile, Australia, China, and an isolated project in northwestern Catamarca, Argentina.
A new scenario
Clean energy transition is driving a significant increase in the global demand for minerals (not only lithium but also cobalt, nickel, copper and other rare earths elements). The recent
$10.6 billion merger between Allkem Ltd. And Livent (that includes the Salar del Hombre Muerto lithium projects in the province of Catamarca, Argentina) not only sparked a surge in Australian-listed lithium mining stocks but also triggered the expectation for increased activity in the global M&A market involving mining assets (including through the consolidation of relevant industry players to achieve more efficient supply chains).
Nearly 80% of the world’s known lithium deposits are found in four countries: Argentina, Bolivia and Chile (the so called “South American lithium triangle”), and Australia.
Argentina alone accounts for over 20% of the world’s reserves, has the largest lithium project pipeline in the planet, and offers certain competitive advantages from a cost
perspective. Argentina’s lithium production has increased dramatically, from less than 1% of the global production in 1994 to 5% in 2022. Further, experts believe that Argentina’s
production will surpass Chile’s production by 2026 and represent a 13% of the world market share by 2030 according to JP Morgan.