Superlative headlines in the national media regularly predict a "boom," a "revolution," a mineral "of the future" lying beneath the vertiginous salt deserts of the country's northwest region. Argentina, struggling with galloping inflation (113% year-on-year) and a poverty rate of 40%, has an excellent reason to celebrate: It has officially joined the "Golden Triangle," the South American region that also includes Bolivia and Chile, which, according to France's National Center for Scientific Research (CNRS), is home to almost two-thirds of the world's lithium resources.

Lithium is an essential mineral in the batteries used in portable devices and electric vehicles, and its production is being encouraged by the energy transition. It could thus become one of Argentina's major economic drivers. With just a few weeks before the presidential election, on October 22, the three leading candidates are banking on an increase in exports to turn the economy around, with lithium all the more part of their vision for the country's production.

However, when neighboring Chile is rethinking its lithium development strategy, including creating a national company, Argentina is groping its way through the environmental and social challenges raised by the production of this critical metal.

With 33,000 tonnes to be produced in 2022, the country ranks fourth globally, far behind Australia, Chile, and China. Last year, lithium exports, mainly to China and Japan, accounted for almost $700 million in exports − a 234% leap in value, boosted by high prices. However, at this stage, "white gold" remains a drop in the ocean when looking at Argentine exports with a timid 0.8%.

"Lithium production takes time, with projects maturing over many years," said Victor Delbuono, economist and researcher at Fundar (a research center specializing in public policy development). Between 2024 and 2025, five new projects are expected to enter the production phase in addition to three existing ones, while 41 are in prospecting or feasibility studies, according to the authorities. "By 2025, lithium exports could be worth $5.6 billion," said the country's mining secretariat, which reports to the economy ministry.

The Central Bank's coffers need it badly, and the country is looking for greenbacks. The challenge is also to diversify exports heavily dependent on the agricultural sector, whose health is subject to the vagaries of the weather: A historic drought penalized the Argentine economy this year.

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