Argentina and the United States on Thursday signed a Memorandum of Understanding (MoU) to strengthen the production of “critical minerals” essential for the energy transition.
The agreement, inked in Buenos Aires on Thursday, was signed by Argentina’s Foreign Minister Diana Mondino and US Under Secretary for Economic Growth, Energy, and Environment José Fernández, who is on a regional tour.
The accord ensures deeper cooperation on the mining of metals such as lithium, of which Argentina has the world's third-largest reserves.
The two nations want to “deepen bilateral cooperation on critical minerals and energy, as well as Argentina's participation in US strategic supply chains,” said Argentina’s Foreign Ministry in a statement.
It will “promote trade and investment between the countries of the participants in critical mineral resource exploration, extraction, processing and refining, and recycling and recovery.”
“The goal is to increase awareness of investment opportunities and identify potential co-financing opportunities for critical mineral investments,” said President Javier Milei’s government.
“By signing this Memorandum, the United States and Argentina are advancing their shared interest in supporting the energy transition and deploying clean energy technologies,” the US government said in a separate release.
Washington has already signed similar deals on the production of minerals, including nickel and cobalt, with other countries in the region, such as Peru and Chile.
Chile, along with Bolivia and Argentina, is part of the so-called “lithium triangle,” an area that could contain more than half of the world's lithium reserves, according to experts.
In 2023, Argentina ranked as the world's fourth-largest producer of the metal, behind Australia, Chile and China, according to data from the US Geological Survey.
An essential element for the energy transition, lithium is key to the batteries of electric cars and smartphones.
The Foreign Ministry in Buenos Aires said the deal highlighted “Argentina's potential as a reliable supplier of strategic resources.”
“Collaboration with the United States is expected to continue in order to ensure the supply of key minerals for energy security as well as working together so that our country occupies a relevant place in the value chains of this new industry,” it concluded.
– TIMES/AFP
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