Argentina approved Ganfeng Lithium Group’s $1.24 billion lithium expansion project, strengthening foreign investment and boosting the country’s growing lithium exports.
Argentina’s government, under President Javier Milei’s administration, has officially approved a major lithium investment project led by China-based Ganfeng Lithium Group. The project, valued at approximately $1.24 billion, is aimed at expanding lithium operations in Argentina’s Jujuy Province, a region considered one of the country’s most resource-rich mining areas. The approval marks another significant development in Argentina’s rapidly growing lithium industry and reinforces the country’s position as a key global supplier of battery minerals.
The investment will be carried out through a joint venture involving several strategic partners. Alongside Ganfeng Lithium Group, the consortium includes Lithium Argentina and JEMSE, the state-owned mining and energy company of Jujuy Province. Among the participating partners, Ganfeng Lithium remains the largest shareholder, holding a 47 percent stake in the project. The collaboration reflects the increasing international interest in Argentina’s lithium reserves, which are considered among the most valuable globally due to their scale and quality.
The project has been incorporated into Argentina’s RIGI framework, formally known as the country’s large-scale investment incentive regime. Introduced by the Milei administration in October 2024, the RIGI policy was designed to attract substantial foreign investment into strategic sectors such as mining, energy, and infrastructure. Under this framework, projects with investments exceeding $200 million are eligible for a range of benefits, including long-term legal protections, tax reductions, tariff advantages, and favorable foreign exchange conditions for up to 30 years. By securing inclusion in the RIGI program, the lithium venture gains greater operational stability and financial predictability, factors considered essential for large-scale mining developments.
The approval is particularly noteworthy because it signals a more flexible approach by the Milei administration toward Chinese investment in Argentina’s natural resource sector. In previous instances, the administration had reportedly limited or blocked participation by Chinese state-owned enterprises in certain local resource projects. Against that backdrop, the authorization of a major Chinese-backed lithium expansion indicates a shift toward a more pragmatic investment strategy focused on economic growth and export development.
Argentina’s lithium sector has been experiencing rapid expansion amid rising global demand for electric vehicle batteries and energy storage technologies. Industry figures indicate that the country’s lithium exports increased by 45 percent year-on-year during the first quarter of the year. This strong growth enabled Argentina to overtake Chile and become the world’s second-largest lithium exporter. The country is part of the “Lithium Triangle,” a South American region shared with Chile and Bolivia that contains some of the world’s largest lithium reserves.
Major international mining companies are now competing to secure long-term access to these high-quality resources. Both Ganfeng Lithium Group and Rio Tinto have strengthened their presence in Argentina, emerging as leading players in the country’s expanding lithium industry. Their investments are helping accelerate the development of South America’s battery materials supply chain while positioning Argentina as a critical contributor to the global clean energy transition.
