Lithium Upswing: Development and Growth Prospects in Jujuy
Argentina, and especially the province of Jujuy, is home to one of the largest lithium reserves in the world. This strategic metal has transformed the dynamics of the energy business globally.
The figures are staggering and reveal the crucial role this mineral plays in modern technology and the transition to more sustainable energy sources.
Lithium has made headlines around the world in recent years, and this mineral is becoming increasingly well-known.
Lithium has become increasingly important in the last decade, and the enormous reserves found in the Argentine North are attracting the attention of large investors.
Since 2011, the global price of lithium carbonate has not stopped rising. This resource, extracted from brines, pegmatites, and sedimentary rocks, is essential for the manufacture of car batteries and electronic devices.
The exponential growth in the demand for electric vehicles worldwide, the demand for a shift towards more sustainable cities, and the use of renewable energy have made lithium an indispensable element in the industry.
The European Union will ban the sale of new diesel and gasoline vehicles from 2035 onwards, making electric traction the only viable alternative.
The Three Great Lithium Players: Argentina, Bolivia, and Chile
It is estimated that Argentina, Bolivia, and Chile, part of the «Lithium Triangle,» hold almost 70% of the world’s lithium resources, and that 31% of the world’s technological production depends on this area for the supply of this raw material for the manufacture of technological products.
Argentina is the fourth largest producer of the mineral in the world, after Australia, Chile, and China.
While there is no shortage of lithium, as this metal ranks 25th in the ranking of the most abundant elements on Earth, there are only a few natural deposits in the world where it can be found in concentrations suitable for exploitation.
The provinces of Jujuy, Salta, and Catamarca concentrate 1/7 of the world’s lithium reserves, placing them on the podium of opportunities that are attracting the most interest in the world due to their enormous future prospects.
Jujuy Province: Leader in Reserves and Sustainable Development
Jujuy is the province in Argentina with the largest lithium reserves. Exploitation in the Puna salt flats began in the 1990s, and has not stopped growing since then.
Jujuy has projects that go beyond obtaining lithium carbonate. It seeks to promote industrialization, foster integration with local suppliers, and develop innovative projects related to these extraction processes.
The lithium mining production of Jujuy is mainly destined for the foreign market, which has led to lithium being declared a strategic natural resource of the province by decree 7592/11.
The main minerals exported by Jujuy include lithium (48%), lead (22%), zinc (14%), and silver (13%). Lithium carbonate is mainly shipped to Asia, where the plants for the production of inputs for battery manufacturing are located, with China and Japan as the main buyers.
«Sales de Jujuy», the first productive lithium project
«Sales de Jujuy», partnered with the Australian company Orocobre, was the first lithium exploitation project that entered the productive phase in the province and made its first export in 2015.
The province of Jujuy participates in lithium production projects through JEMSE, a state-owned company that operates in association with other private companies, promoting sustainable energy development and driving the change in the energy matrix of the province of Jujuy and the country.
Cauchari-Olaroz Project
In addition to Jujuy’s lithium production, the Cauchari-Olaroz project has started production, with an estimated investment of US$ 750 million.
The company Exar is the developer, of which the Canadian mining company Lithium Americas has a 46% stake and is responsible for controlling the operation. The Chinese company «Ganfeng Lithium» has a 45% stake and the provincial company JEMSE has an 8% stake.
«Cauchari-Olaroz» aims to be the basin with the highest lithium production in Argentina and a production of between 60,000 and 80,000 tons of lithium carbonate, in addition to being the second largest brine production basin in the world.
Community Development and Sustainability
Since their arrival in Jujuy, the producing companies have contributed to the development of the community in which they carry out their activities. The implementation of new exploration projects involves consultation with the local community and the generation of direct and indirect employment. Community members are hired for collaboration tasks, especially as guides at the start of the activity.
The generation of indirect job positions is significant, hiring local companies as suppliers of various services in industrial facilities demonstrates commitment to the sustainable development of communities.
Just as lithium has become a strategic material for reducing carbon emissions and encouraging environmental care, producing companies have set out to achieve sustainable productions, seeking to strike a balance between economic development and environmental preservation.
How does the company JEMSE (Jujuy Energy and Mining State Company) work?
Within the framework of the Seminar organized by the European Union Commission, Felipe Albornoz, President of JEMSE, addressed various relevant topics. Among them, he highlighted the tools available for those companies interested in carrying out lithium mining activities in the province.
Albornoz referred to the free zone developed by the state-owned company, the efforts to achieve the goal of transforming the public transportation fleet by incorporating electric buses, and shared his perspective on the need for legal support that encourages electromobility. Additionally, he detailed the agreements established with international companies specialized in renewable energy with ambitious objectives.
He also delved into ongoing mining projects, provided figures on the energy generation of current initiatives, and highlighted progress in thermosolar and distributed energy projects.
The president of JEMSE also provided updates on the progress of the awarded project, where the company SECCO emerged as the successful bidder.
For those interested in learning more details, Felipe Albornoz’s complete presentation is available on our website, accessible via the QR code.