Dubai-based United Mining Projects Corporation (UMPC) has announced plans to start producing battery-grade lithium in Argentina in the upcoming year. The company aims to deliver 5,000 metric tons by 2027, with a goal to double production by 2028, according to CEO Bradley Pielsticker.
Argentina’s Lithium Production Landscape
As the fourth-largest lithium producer globally, Argentina is set to see a significant increase in lithium output with a number of projects led by international companies scheduled to commence soon. UMPC will be operating in the Catamarca province through its subsidiary Marhen Lithium and is currently evaluating its initial production samples.
Investment and Production Plans
Last month, UMPC announced a $550 million investment in the Catamarca project. The company is in the process of selecting the extraction method to use, with a likely combination of direct lithium extraction (DLE) and evaporation pools.
Pilot Plant and Resource Management
“We are determining the steps for our pilot plant, which we anticipate will be operational next year,” stated Pielsticker. The company is considering direct extraction methods to improve water resource management.
Economic Context and Legislative Support
Amidst a prolonged economic crisis and foreign currency shortage, Argentina is relying on increased mining exports to bolster its economy. Lithium production in the country saw a nearly 30% increase in 2023 compared to the previous year.
Government Proposals and Industry Response
Pielsticker expressed support for a proposal from President Javier Milei, currently under discussion in Congress, which aims to provide tax, customs, and exchange rate benefits for large-scale projects. “We are pleased with the proposed legislative changes that could positively impact mining projects,” Pielsticker added.
