China's Ganfeng Lithium mining company has commenced lithium production at its Mariana project in northerly Argentina, it announced on Wednesday. This marks the initiation of several new lithium ventures by Ganfeng in the South American nation.
Ganfeng is a key player in the global production of lithium, a primary component in rechargeable batteries.
The Mariana facility, situated in the Salta province, stands as a $790 million investment with the capability to yield 20,000 metric tons of lithium chloride annually from extractions at the Llullaillaco salt flat. In addition, Ganfeng has invested $190 million in constructing a solar park to cater to the plant's energy requirements.
Wang Xiaoshen, President of Ganfeng Lithium Group, mentioned that the company's other lithium projects in Argentina are making progress. The Pozuelos-Pastos Grandes project is slated to commence construction this year, and the Incahuasi–Arizaro project is in an advanced exploration phase.
Ganfeng is also a co-partner with Lithium Argentina in the operational Cauchari-Olaroz project and the viability-stage Pastos Grandes project.
President Javier Milei's administration has embraced mining initiatives as a means to attract foreign investment into the nation, offering a set of incentives lauded by lithium miners.
Argentina, in conjunction with Chile and Bolivia, forms Latin America's lithium triangle—a region boasting one of the largest reserves of the lightweight metal worldwide.
Several other companies are also engaged in lithium projects in Argentina, although some have experienced setbacks due to oversupply and a decline in electric vehicle sales.
Addressing the inauguration of the Mariana project, Mining Secretary Luis Lucero expressed optimism that the plant would bolster local economies.
"The Mariana project not only promises significant foreign currency earnings but also the creation of sustainable, high-quality employment opportunities for hundreds of families," he added.