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China's Ganfeng begins lithium production at Argentina’s Mariana Project

The Ganfeng lithium mining company in China has started producing lithium in its Mariana project, located in northern Argentina. This is the first of many new lithium projects that are underway in South America.

Ganfeng, one of the largest producers of white metal in the world is used primarily to manufacture rechargeable batteries.

The Mariana plant in Salta province represents an investment of $790 million and is capable of producing 20,000 metric tonnes of lithium chloride each year. This comes from the extraction of the Llullaillaco flat salt.

Ganfeng spent another $190 million on a solar park that will support the plant's needs for energy.

Wang Xiaoshen is the president of Ganfeng Group. He said that other lithium projects in Argentina are progressing. Pozuelos - Pastos Grandes will begin construction in this year. The Incahuasi - Arizaro project, on the other hand, is currently in an advanced exploration phase.

Ganfeng and Lithium Argentina are also co-owners of the Cauchari - Olaroz project which is currently in operation as well as the Pastos Grandes Project, which is in the feasibility phase.

The administration of President Javier Milei has welcomed mining projects to attract foreign investment and offered an incentive scheme that has been praised by international miners of copper and lithium.

The so-called Latin American lithium triangle includes Argentina, Chile, and Bolivia. It contains one of the largest reserves of this ultra-lightweight metal in the world.

Other companies are also developing a number of lithium projects in Argentina, though some have been delayed because of low lithium prices due to oversupply as well as a slowdown of sales of electric cars.

Luis Lucero, the Mining Secretary who inaugurated the project, expressed his hope that the Mariana Plant can strengthen the local economy.

He said that the Mariana project was not only a source of earnings in foreign currencies, but it also created quality jobs for hundreds of families. (Reporting and writing by Eliana Razewski, Editing by Sandra Maler).

(source: Reuters)