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Argentina’s lithium pipeline promises “white gold” boom as Chile tightens control

Argentina's lithium pipeline promises "white gold" boom as Chile tightens control
Photo: Reuters

April 24 |

In Argentina’s mountainous north, a robust portfolio of lithium projects about to come online looks set to unlock a production wave that could triple its output of the key metal for electric vehicle batteries in the next two years.

The world’s fourth-largest producer of the silvery-white metal sits within the so-called “lithium triangle” and has been attracting investment from Canadian mining companies to ones from China with a regional and market-driven model, even as a wave of resource nationalism has swept through the region.

Neighboring Chile, the region’s top lithium producer, last week unveiled plans for a state-led public-private model, spooking investors. Bolivia has long maintained tight control over its huge but largely untapped resources, while Mexico nationalized its lithium deposits last year.

In Argentina, although state energy company YPF YPFD.BA began exploring for lithium last year, the sector has been driven largely by private enterprise and periodic approvals of new projects as the government has sought to attract more export dollars through mining, a rare bright spot amid the economic downturn.

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“Argentina has been granting concessions to projects for the last 10 years,” said Franco Mignacco, president of the Argentine Mining Business Chamber. “That’s why today we have this level of lithium investment and development and the possibility of growth.”

Mignacco estimated that Argentina’s current production of 40,000 tons of lithium carbonate could triple by 2024-2025 to 120,000 tons, which could take it beyond China and closer to Chile, which currently produces about 180,000 tons per year.

That would be driven by new projects coming online in addition to the two currently in production. The country has six lithium projects under construction and 15 in advanced exploration or feasibility stage, Mignacco said.

Argentina, Bolivia and Chile together sit on half of the world’s mineral resources beneath otherworldly salt flats in the high-altitude Andean plains.
But strategies for developing it diverge.

“Argentina’s lithium sector has thrived through a decentralized pro-market strategy,” said Benjamin Gedan, director of the Latin America program at The Wilson Center, adding that, in contrast, Bolivia’s lithium sector “has repeatedly stagnated as a result of excessive state control.”

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Chile, he said, may have found a “smart middle ground” with its public-private model, which would hand majority control of all new lithium projects to the state in a nationalist shift, but would still give private enterprise a key role.

The wave of resource nationalism has sparked some talk among officials of a possible OPEC-style lithium cartel in the region, although analysts see this as unrealistic given the industry’s diverse models and levels of development.

Meanwhile, Argentina faces challenges including economic turbulence with high inflation and capital controls complicating business, while the country heads into general elections in October, creating political uncertainty.

However, its lithium pipeline may keep the sector buzzing and even gain ground on rivals. Overtaking neighboring Chile would be highly unlikely, but some analysts were aiming high.

“Chile today produces and exports much more lithium than Argentina,” said Natacha Izquierdo, an analyst at consultancy ABCEB. “But if the projects we have here today come to fruition, Argentina could overtake us.”

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International

EU Faces Migration Crisis After 60,000 Migrants Arrive in Spain’s Ceuta Enclave

The arrival of around 60,000 migrants from Morocco to Spain’s Ceuta enclave triggered a major European Union crisis on Friday, after Madrid described the situation as an “attack” on its territorial integrity.

At least 34 people died while attempting to reach the Spanish territory, according to local authorities.

Hundreds of migrants had begun arriving in Ceuta earlier in the week, either by swimming across the border or climbing security fences. Most of those who entered were young men and teenagers.

However, the situation escalated dramatically early Thursday morning, when the number of arrivals surged within a few hours, reaching nearly 60,000 people. According to the Spanish government, the vast majority of them — around 48,000 migrants — had returned to Morocco by Friday evening.

The episode represents one of the most serious migration crises faced by the autonomous city of Ceuta, which has a population of around 84,000 residents, in recent years.

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Several European countries responded strongly to the crisis, with Italy announcing the temporary suspension of the Schengen free movement agreement with Spain, a measure supported by Finland and Denmark.

“The temporary suspension of Schengen with Spain is a necessary decision to protect the security of our citizens and defend Europe’s borders,” Italian Foreign Minister Antonio Tajani said in a post on X.

Italy’s Interior Ministry confirmed that the country had tightened controls on maritime and air entry points from Spain, but clarified that the measure would not affect Spanish or European citizens traveling to Italy.

The additional checks will specifically target non-European citizens arriving from Spain, according to the ministry.

The measure will remain in effect for one month starting Saturday, authorities said.

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Spain’s Foreign Minister José Manuel Albares responded to the Italian announcement through a statement on X, as European governments continued discussions over the consequences of the migration crisis.

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International

Chuck Schumer Unveils Proposal to Strengthen Oversight of the U.S. Presidency

U.S. Senate Democratic Leader Chuck Schumer on Thursday announced legislation to establish a federal anti-corruption office aimed at strengthening oversight of the executive branch and preventing future presidents from using the White House for personal financial gain.

Schumer said the proposal was prompted by what he described as President Donald Trump’s misuse of the presidencyto benefit his family’s business interests.

“In just 18 months, the Trump family has made more than $4 billion by exploiting the influence of the presidency,” Schumer alleged.

The New York senator also argued that the alleged corruption has had direct economic consequences for American households.

“The same corrupt practices Trump is using to pocket billions of dollars are also forcing Americans to pay, on average, $3,100 more each year because of the rising cost of living,” he said.

The legislation was introduced alongside Democratic Senators Alex Padilla, Jeff Merkley, and Andy Kim.

According to Schumer, the bill has two primary objectives: “First, to return money to the American people. Second, to ensure that no one can ever steal from them again.”

He added that the proposal would create legal mechanisms allowing citizens to seek the recovery of funds allegedly obtained through government corruption.

“The fact that Trump stole money from the American people does not make it his. Americans deserve to get that money back,” Schumer said.

Under the proposed legislation, any U.S. citizen—as well as state attorneys general acting on behalf of their residents—would be authorized to file civil lawsuits to recover funds allegedly acquired through corrupt practices by public officials.

“Our bill would empower any individual, including a state attorney general acting on behalf of the people of that state, to bring legal action to recover money stolen from the public through government corruption,” Schumer said.

The measure is expected to face debate in Congress, where Republicans and Democrats remain deeply divided over executive accountability and the scope of presidential powers.

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International

Trump Administration Urges Latin America to Increase Defense Spending Against Organized Crime

The administration of U.S. President Donald Trump on Wednesday urged Latin American countries to increase investment in defense and security to strengthen the fight against organized crime and drug trafficking networks.

The appeal was made by Elbridge Colby, the U.S. Under Secretary of Defense for Policy, in an article published by Americas Quarterly. Colby argued that governments across the region should assume greater responsibility for protecting their territories from transnational criminal organizations.

“It is essential that our neighbors in the region invest more in their own defense and security. There is no reason why any country, especially those facing significant narco-terrorist threats, should spend so little on defense,” Colby wrote.

The Pentagon official described it as “absurd” that some Latin American nations allocate less than 1% of their Gross Domestic Product (GDP) to defense, although he did not identify the countries. He contrasted that with NATO members in Europe, many of which are increasing defense expenditures to 3.5% of GDP, with an additional 1.5% devoted to security-related investments.

Colby, who participated earlier this month in the Conference of Defense Ministers of the Americas in Cusco, Peru, said there is “a historic opportunity” for the United States and its regional partners to strengthen cooperation against drug trafficking and other transnational threats.

He also defended the proposed Shield of the Americas, a military partnership promoted by the Trump administration to combat organized crime and supported by several conservative governments in the region. The initiative does not include Brazil or Mexico.

In addition, Colby said the administration’s security strategy includes an updated interpretation of the Monroe Doctrine, the long-standing U.S. foreign policy principle that historically viewed Latin America as part of Washington’s sphere of influence.

“Of course, we recognize that the Monroe Doctrine is controversial in many circles. But it is also frequently misunderstood,” he said.

According to Colby, the United States is not seeking “exploitation, subordination or dependence,” but rather a region characterized by greater prosperity, stability and security.

He also stated that Washington is prepared to use “all available resources,” including the U.S. Armed Forces, to combat drug trafficking and irregular migration. Colby highlighted ongoing counternarcotics operations in the Caribbean, despite criticism from human rights organizations that have questioned some missions over allegations of extrajudicial killings in international waters.

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