Argentina lithium growth could reshape Latin America’s battery materials market over the next decade, as investor-friendly policies, faster permitting and a broad project pipeline position the country to challenge Chile’s long-standing regional lead.
Argentina Builds Momentum With a Larger Project Pipeline
Argentina could match Chile’s lithium output by 2035, according to Argentina’s mining secretary Luis Lucero, who said eight new projects are scheduled to come online by 2030. Some industry participants are even more bullish, arguing that Argentina could overtake Chile within eight years if current policy trends continue.
The country now has more than 60 active lithium projects and seven producing assets, giving it the largest number of operating lithium projects in Latin America. Two additional developments are expected to start this year, potentially lifting Argentina’s output to 159,000 tonnes of lithium carbonate equivalent.
Argentina still trails Chile’s 2024 production of around 305,000 tonnes of LCE, but the gap could narrow quickly. Argentina has more than 20 projects in advanced stages, including eight close to production, with government projections pointing to 583,000 tonnes per year of LCE by 2035.
Chile Faces Delays From Regulation and DLE Requirements
Chile remains one of the world’s most important lithium producers, but its project pipeline has slowed because of complex approval rules and regulatory uncertainty. Lithium is not concessionable in Chile and remains classified under legislation dating back to the 1970s, requiring miners to obtain special mining contracts through lengthy public processes.
Chile’s national lithium strategy also requires all new projects to use direct lithium extraction. DLE is viewed as more environmentally efficient than evaporation ponds, but it must be adapted to each brine chemistry. That makes new projects more technically complex, more expensive and slower to develop.
Market participants at the Santiago event estimated that DLE projects can require investment of up to $44,000 per tonne of LCE capacity, compared with about $26,000 per tonne for evaporation-based projects. This cost gap is becoming a key factor in the competition between Chile and Argentina for new lithium investment.
Rigi Strengthens Argentina’s Lithium Investment Case
Argentina’s incentive regime for large investments, known as Rigi, has become a major policy advantage for lithium developers. The scheme offers tax exemptions, import-export benefits and legal protections, including the ability for approved companies to settle disputes outside Argentina.
Ten lithium projects have already applied to Rigi, with three approved. Former Rio Tinto chief executive Jakob Stausholm described the regime as a “game-changer” and said it helped support confidence in investing in Argentina’s lithium sector.
For battery manufacturers, automakers and traders, Argentina’s appeal is increasingly clear. The country offers large brine resources, a growing project base, western hemisphere supply security and a more open investment framework. Chile still has world-class resources, but without faster approvals, its next wave of lithium supply may arrive too slowly to protect its regional lead.
SuperMetalPrice Commentary
Argentina’s lithium growth is becoming a policy-driven supply story, not just a geology story. Chile still has scale, experience and high-quality resources, but Argentina is winning investor attention because projects can move from exploration to production with fewer regulatory obstacles. The key market question is whether Argentina can convert its large pipeline into reliable battery-grade lithium supply before Chile reforms its permitting model.
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