In a move by the US government of Joe Biden to dispute China's territory, the Argentine Foreign Ministry signed this Thursday 22 "a Memorandum on cooperation in critical minerals." And although the official statement does not say so, the diplomatic agreement is intended to gain ground on China in the exploitation of Argentine lithium.
To this end, the United States will invest half a million dollars to assist Argentine laboratories, and this is expected to be the first of several agreements to boost investment and trade in the critical minerals sector, especially lithium.
The memorandum was signed this Thursday in Buenos Aires by the Argentine Foreign Minister, Diana Mondino , and Under Secretary for Economic Growth, Energy, and Environment of the United States Department of State, José W. Fernández.
“We want to support Argentina in developing its technical capacity and ensure that mining investments are sustainable and beneficial for both countries,” Fernandez said in a later statement.
This move by the United States is presented as the formal kick-off to dispute the territory of China, which until now completely dominates the sector with an investment of 3.4 billion dollars for lithium projects in the provinces of Jujuy, Salta and Catamarca.
Known as “white gold,” lithium is a strategic resource worldwide, and Argentina is home to 20% of the world’s reserves.
According to the US official, “China controls two-thirds of the critical minerals produced in the world,” and warned that “it is never good to have only one seller.” And that is what they are for.
In this regard, he blamed China's dominant position for the dramatic fall in the price of lithium, stating that " the country is flooding the market, which has caused the price to go from $80,000 per tonne in 2023 to just $12,000 in 2024", something that "a monopolist does".
However, he also clarified that the United States is not seeking to break relations with China, but rather to establish fair competition: “We want China to compete under the same rules: to not steal intellectual property, to comply with the same requirements of transparency and labor and environmental legislation as other countries.”
According to an official statement released by the Ministry of Foreign Affairs, International Trade and Worship, the agreement seeks to "promote trade and investment in the exploration, extraction, processing and refining, and recycling and recovery of critical mineral resources," in order to raise awareness of investment opportunities and identify potential co-financing opportunities.
Javier Milei's roadmap with the US for Lithium
According to information published by the Argentine Ministry of Foreign Affairs, the Memorandum of Understanding signed with the United States clearly “ aims to strengthen cooperation between the Participants in the supply chains of critical mineral resources and to promote trade and investment between the countries of the Participants in the exploration, extraction, processing and refining, and recycling and recovery of critical mineral resources in order to increase awareness of investment opportunities and identify potential co-financing opportunities for investments in critical minerals.”
He explained that “ Undersecretary Fernández’s visit follows up on the intense bilateral exchange that has been taking place with the United States in recent months, reflected in the visit of Secretary of State Antony Blinken to Argentina last February, as well as that of Foreign Minister Mondino to Washington in May of this year and the holding of the IV Meeting of the High Level Council of the Argentina-United States Framework Agreement on Trade and Investment last June, among other meetings.” And that Thursday’s meeting “seeks to deepen bilateral cooperation in critical minerals and energy, as well as Argentina’s participation in the strategic supply chains of the United States.”
He added that "during the presence of the United States Delegation, and together with the Ministry of Mining and the Ministry of Energy of the Nation, a Dialogue on Energy Security will be launched between the United States and Argentina, to plan cooperation actions on these strategic issues."
“Through this agreement, Argentina's potential as a reliable provider of strategic resources will continue to be developed, enhancing the resilience of supply chains in the region and around the world. In this regard, we hope to continue collaborating with the United States to ensure the supply of key minerals for energy security and to work together so that our country occupies a relevant place in the value chains of this new industry,” he concludes.
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