The promise of Argentina's vast lithium reserves, once seen as a cornerstone of the global electric vehicle revolution, is facing unprecedented challenges as mining companies across the country's salt flats dramatically scale back operations amid a devastating market downturn. The crisis, triggered by an 80% collapse in lithium prices since early 2023, has forced companies to implement widespread cost-cutting measures and reconsider their expansion plans in South America's "lithium triangle."

The situation's severity has become increasingly apparent through extensive interviews with industry executives, government officials, and market analysts, revealing a sector grappling with fundamental shifts in the global lithium market. Companies operating in Argentina, the world's fourth-largest lithium producer, are implementing dramatic measures to weather the storm, including staff reductions, suspended exploration projects, and significantly reduced production targets.

Galan Lithium, an Australian company developing a project in the Hombre Muerto basin, exemplifies the industry's predicament. "We were prepared for a rainy day and we found a storm," admits Juan Pablo Vargas de la Vega, the company's managing director. The firm has been forced to reduce its phase one production target by approximately 25%, from 5,400 to 4,000 tons annually.

The market upheaval has created a perfect storm of challenges: oversupply conditions, weaker-than-expected electric vehicle demand, and difficulties securing financing have combined to create significant hurdles for both established producers and emerging players. This environment has sparked increased merger and acquisition activity, as evidenced by mining giant Rio Tinto's recent USD 6.7 billion acquisition of Arcadium Lithium, a deal that will position Rio Tinto as the world's third-largest lithium producer.

Industry analysts anticipate more consolidation ahead, particularly among early-stage projects. "For companies that aren't producing and have resources in Argentina, it's very probable that they'll be receiving offers," notes Federico Gay, a lithium analyst at Benchmark Mineral Intelligence. The current market conditions have made many companies vulnerable to takeover attempts, with valuations of lithium companies globally dropping by 60-70% over the past 18 months.

The impact on Argentina's lithium sector extends beyond immediate operational challenges. CRU Group, a UK-based mining consultancy, has revised its 2027 production forecast for Argentina downward by approximately 10% and no longer expects the country to surpass Chile as the world's second-largest producer by that year. This adjustment reflects the broader industry slowdown, with companies like Argosy Minerals forced to take dramatic steps, including shuttering pilot plants and laying off workers.

Despite these challenges, Argentina's government remains committed to supporting the industry. Flavia Royon, head of a government-sponsored lithium committee, highlights ongoing efforts to attract investment through market-friendly regulations and targeted incentives, including tax breaks and eased capital controls for large projects. These measures have helped maintain momentum for advanced projects from major players like Rio Tinto, Eramet, Posco, and Ganfeng, even as earlier-stage exploration faces significant headwinds.

Looking ahead, industry experts project that while the immediate future remains challenging, a potential supply shortfall could emerge by the decade's end as demand for electric vehicle batteries and energy storage solutions continues to grow. However, price recovery isn't expected before mid-2025, with some analysts suggesting low pricing could persist through early 2026.

For companies like Argosy Minerals, which plans a 12,000-ton per year facility at the Rincon salt flat, the strategy involves careful resource management while awaiting market improvement. "That's where higher lithium prices probably need to provide an incentive for financiers to come out and support companies like us to develop lithium projects," explains Jerko Zuvela, the company's managing director.

The promise of Argentina's vast lithium reserves, once seen as a cornerstone of the global electric vehicle revolution, is facing unprecedented challenges as mining companies across the country's salt flats dramatically scale back operations amid a devastating market downturn.

The promise of Argentina's vast lithium reserves, once seen as a cornerstone of the global electric vehicle revolution, is facing unprecedented challenges as mining companies across the country's salt flats dramatically scale back operations amid a devastating market downturn. The crisis, triggered by an 80% collapse in lithium prices since early 2023, has forced companies to implement widespread cost-cutting measures and reconsider their expansion plans in South America's "lithium triangle." The situation's severity has become increasingly apparent through extensive interviews with industry executives, government officials, and market analysts, revealing a sector grappling with fundamental shifts in the global lithium market. Companies operating in Argentina, the world's fourth-largest lithium producer, are implementing dramatic measures to weather the storm, including staff reductions, suspended exploration projects, and significantly reduced production targets. Galan Lithium, an Australian company developing a project in the Hombre Muerto basin, exemplifies the industry's predicament. "We were prepared for a rainy day and we found a storm," admits Juan Pablo Vargas de la Vega, the company's managing director. The firm has been forced to reduce its phase one production target by approximately 25%, from 5,400 to 4,000 tons annually. The market upheaval has created a perfect storm of challenges: oversupply conditions, weaker-than-expected electric vehicle demand, and difficulties securing financing have combined to create significant hurdles for both established producers and emerging players. This environment has sparked increased merger and acquisition activity, as evidenced by mining giant Rio Tinto's recent USD 6.7 billion acquisition of Arcadium Lithium, a deal that will position Rio Tinto as the world's third-largest lithium producer. Industry analysts anticipate more consolidation ahead, particularly among early-stage projects. "For companies that aren't producing and have resources in Argentina, it's very probable that they'll be receiving offers," notes Federico Gay, a lithium analyst at Benchmark Mineral Intelligence. The current market conditions have made many companies vulnerable to takeover attempts, with valuations of lithium companies globally dropping by 60-70% over the past 18 months. The impact on Argentina's lithium sector extends beyond immediate operational challenges. CRU Group, a UK-based mining consultancy, has revised its 2027 production forecast for Argentina downward by approximately 10% and no longer expects the country to surpass Chile as the world's second-largest producer by that year. This adjustment reflects the broader industry slowdown, with companies like Argosy Minerals forced to take dramatic steps, including shuttering pilot plants and laying off workers. Despite these challenges, Argentina's government remains committed to supporting the industry. Flavia Royon, head of a government-sponsored lithium committee, highlights ongoing efforts to attract investment through market-friendly regulations and targeted incentives, including tax breaks and eased capital controls for large projects. These measures have helped maintain momentum for advanced projects from major players like Rio Tinto, Eramet, Posco, and Ganfeng, even as earlier-stage exploration faces significant headwinds. Looking ahead, industry experts project that while the immediate future remains challenging, a potential supply shortfall could emerge by the decade's end as demand for electric vehicle batteries and energy storage solutions continues to grow. However, price recovery isn't expected before mid-2025, with some analysts suggesting low pricing could persist through early 2026. For companies like Argosy Minerals, which plans a 12,000-ton per year facility at the Rincon salt flat, the strategy involves careful resource management while awaiting market improvement. "That's where higher lithium prices probably need to provide an incentive for financiers to come out and support companies like us to develop lithium projects," explains Jerko Zuvela, the company's managing director.

Global Lithium price crash forces Argentina's mining companies to scale back

General Motors (GM) has announced a USD 625 million contribution to a new joint venture with Canadian miner Lithium Americas. This strategic partnership, revealed on Wednesday, aims to develop the Thacker Pass lithium project in Nevada, positioning both companies at the forefront of the domestic EV supply chain.

The announcement sent ripples through the market, with Lithium Americas' U.S.-listed shares surging 16.5% to USD 3.11 in premarket trading, reflecting investor optimism about the deal's potential impact on the company's future prospects.

Under the terms of the agreement, GM will acquire a 38% asset-level ownership stake in the Thacker Pass project. The USD 625 million investment is structured to provide comprehensive support for the project's development, including USD 430 million in direct cash funding to facilitate the construction of Phase 1, and a USD 195 million letter of credit facility. This new agreement supersedes a previous, delayed investment plan worth USD 330 million that was announced by both companies in August.

The Thacker Pass project, located in Humboldt County, just south of Nevada's border with Oregon, is poised to become a cornerstone of the U.S. lithium industry. With reserves estimated to be sufficient for producing battery materials for up to 1 million electric vehicles annually, the project represents a significant step towards reducing American automakers' reliance on Chinese suppliers for critical battery components.

The development of Thacker Pass has not been without challenges. Lithium Americas had to navigate a complex and protracted legal battle against a coalition of conservationists, ranchers, and Indigenous communities before winning the right to proceed with the project. Initial construction at the site commenced in March 2023, marking a pivotal moment in the project's timeline.

The U.S. government has also recognized the strategic importance of the Thacker Pass project. Earlier this year, the Department of Energy (DOE) announced plans to provide Lithium Americas with a loan of up to USD 2.26 billion to support the project's construction. Lithium Americas has indicated that it expects to finalise this DOE loan in the coming weeks, with a final investment decision for the project anticipated by the end of the year.

GM's investment in Thacker Pass aligns with the broader trend of U.S. automakers ramping up their electric vehicle production and seeking to establish more robust, domestic supply chains for critical materials. This strategy is driven by the need to compete effectively in an increasingly crowded EV market while also addressing concerns about over-reliance on foreign sources for essential components.

The joint venture agreement also includes provisions for GM's long-term access to Thacker Pass's lithium production. Upon closing of the transaction, GM will enter into an additional 20-year offtake agreement, securing up to 38% of the production from Phase 2 of the project. This arrangement ensures GM a stable supply of lithium for its ambitious EV production plans well into the future.

In a related development that further highlights GM's commitment to advancing battery technology, the automaker announced a separate USD 10 million investment in Forge Nano, a material science firm specialising in battery material coatings. GM intends to leverage Forge Nano's technology to enhance the performance and longevity of its EV cells, potentially giving it a competitive edge in the rapidly evolving electric vehicle market.

The significance of these investments extends beyond the immediate benefits to GM and Lithium Americas. They represent a crucial step in establishing a more resilient and domestically-oriented supply chain for the U.S. automotive industry. As global competition for lithium and other battery materials intensifies, securing access to these resources becomes increasingly vital for automakers aiming to lead in the electric vehicle space.

Moreover, the development of the Thacker Pass project is expected to create significant economic opportunities in Nevada, potentially generating hundreds of jobs and stimulating local economic growth. This aligns with broader governmental efforts to revitalise American manufacturing and create high-quality jobs in emerging technologies.

As the automotive industry continues its transition towards electrification, partnerships and investments like those announced by GM and Lithium Americas are likely to become more common. These strategic alliances between automakers and mining companies reflect the complex, interconnected nature of the EV supply chain and the need for vertical integration to ensure competitiveness in a rapidly changing market.

The success of the Thacker Pass project and similar ventures will be crucial in determining the United States' ability to establish itself as a leader in EV production and reduce its dependence on foreign suppliers for critical materials. As such, industry observers, policymakers, and environmental groups will be closely monitoring the progress of this joint venture and its implications for the future of sustainable transportation in North America. 
&nbsp;

General Motors (GM) has announced a USD 625 million contribution to a new joint venture with Canadian miner Lithium Americas. This strategic partnership, revealed on Wednesday, aims to develop the Thacker Pass lithium project in Nevada, positioning both companies at the forefront of the domestic EV supply chain.

General Motors (GM) has announced a USD 625 million contribution to a new joint venture with Canadian miner Lithium Americas. This strategic partnership, revealed on Wednesday, aims to develop the Thacker Pass lithium project in Nevada, positioning both companies at the forefront of the domestic EV supply chain. The announcement sent ripples through the market, with Lithium Americas' U.S.-listed shares surging 16.5% to USD 3.11 in premarket trading, reflecting investor optimism about the deal's potential impact on the company's future prospects. Under the terms of the agreement, GM will acquire a 38% asset-level ownership stake in the Thacker Pass project. The USD 625 million investment is structured to provide comprehensive support for the project's development, including USD 430 million in direct cash funding to facilitate the construction of Phase 1, and a USD 195 million letter of credit facility. This new agreement supersedes a previous, delayed investment plan worth USD 330 million that was announced by both companies in August. The Thacker Pass project, located in Humboldt County, just south of Nevada's border with Oregon, is poised to become a cornerstone of the U.S. lithium industry. With reserves estimated to be sufficient for producing battery materials for up to 1 million electric vehicles annually, the project represents a significant step towards reducing American automakers' reliance on Chinese suppliers for critical battery components. The development of Thacker Pass has not been without challenges. Lithium Americas had to navigate a complex and protracted legal battle against a coalition of conservationists, ranchers, and Indigenous communities before winning the right to proceed with the project. Initial construction at the site commenced in March 2023, marking a pivotal moment in the project's timeline. The U.S. government has also recognized the strategic importance of the Thacker Pass project. Earlier this year, the Department of Energy (DOE) announced plans to provide Lithium Americas with a loan of up to USD 2.26 billion to support the project's construction. Lithium Americas has indicated that it expects to finalise this DOE loan in the coming weeks, with a final investment decision for the project anticipated by the end of the year. GM's investment in Thacker Pass aligns with the broader trend of U.S. automakers ramping up their electric vehicle production and seeking to establish more robust, domestic supply chains for critical materials. This strategy is driven by the need to compete effectively in an increasingly crowded EV market while also addressing concerns about over-reliance on foreign sources for essential components. The joint venture agreement also includes provisions for GM's long-term access to Thacker Pass's lithium production. Upon closing of the transaction, GM will enter into an additional 20-year offtake agreement, securing up to 38% of the production from Phase 2 of the project. This arrangement ensures GM a stable supply of lithium for its ambitious EV production plans well into the future. In a related development that further highlights GM's commitment to advancing battery technology, the automaker announced a separate USD 10 million investment in Forge Nano, a material science firm specialising in battery material coatings. GM intends to leverage Forge Nano's technology to enhance the performance and longevity of its EV cells, potentially giving it a competitive edge in the rapidly evolving electric vehicle market. The significance of these investments extends beyond the immediate benefits to GM and Lithium Americas. They represent a crucial step in establishing a more resilient and domestically-oriented supply chain for the U.S. automotive industry. As global competition for lithium and other battery materials intensifies, securing access to these resources becomes increasingly vital for automakers aiming to lead in the electric vehicle space. Moreover, the development of the Thacker Pass project is expected to create significant economic opportunities in Nevada, potentially generating hundreds of jobs and stimulating local economic growth. This aligns with broader governmental efforts to revitalise American manufacturing and create high-quality jobs in emerging technologies. As the automotive industry continues its transition towards electrification, partnerships and investments like those announced by GM and Lithium Americas are likely to become more common. These strategic alliances between automakers and mining companies reflect the complex, interconnected nature of the EV supply chain and the need for vertical integration to ensure competitiveness in a rapidly changing market. The success of the Thacker Pass project and similar ventures will be crucial in determining the United States' ability to establish itself as a leader in EV production and reduce its dependence on foreign suppliers for critical materials. As such, industry observers, policymakers, and environmental groups will be closely monitoring the progress of this joint venture and its implications for the future of sustainable transportation in North America.

GM commits USD 625 million to strategic Lithium joint venture

A fire erupted at a battery recycling facility in southern France, engulfing approximately 900 tonnes of lithium batteries and releasing thick black smoke into the sky, Reuters reported citing local authorities on Sunday.<o:p></o:p>

The fire, which broke out in a warehouse owned by French recycling group SNAM in Viviez, north of Toulouse, has raised concerns about potential environmental and health hazards posed by the burning batteries. <o:p></o:p>

"This incident underscores the potential dangers associated with lithium batteries, given their combustible nature and the toxic materials they contain," Reuters quoted the local councillor Pascal Mazet as saying. <o:p></o:p>

Lithium batteries, integral to various electrical devices including smartphones and electric vehicles, are known to pose fire risks when exposed to heat, raising alarms about the environmental and health implications of the ongoing fire. <o:p></o:p>

In a similar incident in January 2023, a massive fire erupted at a warehouse storing car components and thousands of lithium batteries in Normandy, although authorities managed to contain the blaze without causing casualties. <o:p></o:p>

Despite assurances from firefighters regarding the absence of dangerous air pollution, concerns persist about the potential release of toxic materials into the environment as a result of the ongoing fire at the Viviez facility.<o:p></o:p>

According to reports, thick smoke billowed over the Viviez site, with up to 70 firefighters deployed to combat the inferno, as depicted by French media. <o:p></o:p>

While efforts to control the fire are underway, local official Charles Giusti emphasised that residents living in proximity to the plant face no immediate danger. <o:p></o:p>

However, the slow-burning nature of the fire is expected to prolong firefighting efforts over the coming hours, posing logistical challenges for emergency responders.<o:p></o:p>

A security note for the site warns of potential emissions of cadmium, a highly toxic substance, in the event of a major fire. <o:p></o:p>

While acknowledging the environmental risks posed by toxic fumes, the note assures residents that immediate health hazards are unlikely given the factory's environment and the behaviour of emitted fumes.<o:p></o:p>

&nbsp;(With inputs from Reuters)<o:p></o:p>

A fire erupted at a battery recycling facility in southern France, engulfing approximately 900 tonnes of lithium batteries and releasing thick black smoke into the sky, Reuters reported citing local authorities on Sunday.

A fire erupted at a battery recycling facility in southern France, engulfing approximately 900 tonnes of lithium batteries and releasing thick black smoke into the sky, Reuters reported citing local authorities on Sunday. The fire, which broke out in a warehouse owned by French recycling group SNAM in Viviez, north of Toulouse, has raised concerns about potential environmental and health hazards posed by the burning batteries. "This incident underscores the potential dangers associated with lithium batteries, given their combustible nature and the toxic materials they contain," Reuters quoted the local councillor Pascal Mazet as saying. Lithium batteries, integral to various electrical devices including smartphones and electric vehicles, are known to pose fire risks when exposed to heat, raising alarms about the environmental and health implications of the ongoing fire. In a similar incident in January 2023, a massive fire erupted at a warehouse storing car components and thousands of lithium batteries in Normandy, although authorities managed to contain the blaze without causing casualties. Despite assurances from firefighters regarding the absence of dangerous air pollution, concerns persist about the potential release of toxic materials into the environment as a result of the ongoing fire at the Viviez facility. According to reports, thick smoke billowed over the Viviez site, with up to 70 firefighters deployed to combat the inferno, as depicted by French media. While efforts to control the fire are underway, local official Charles Giusti emphasised that residents living in proximity to the plant face no immediate danger. However, the slow-burning nature of the fire is expected to prolong firefighting efforts over the coming hours, posing logistical challenges for emergency responders. A security note for the site warns of potential emissions of cadmium, a highly toxic substance, in the event of a major fire. While acknowledging the environmental risks posed by toxic fumes, the note assures residents that immediate health hazards are unlikely given the factory's environment and the behaviour of emitted fumes. (With inputs from Reuters)

Major fire at French recycling plant engulfs 900 tonnes of lithium batteries

ExxonMobil is reportedly in talks with Tesla, Ford Motor, Volkswagen, and other automakers to supply lithium for electric car batteries, as stated by individuals familiar with the matter, according to a Bloomberg Law report cited by Reuters.

However, discussions are likely in the early stages as ExxonMobil currently lacks the means to produce and supply this vital component for electric vehicles.

Additionally, Exxon has been engaged in negotiations with International Battery Metals for licensing Direct Lithium Extraction technology, according to Reuters.

In a separate report last month, Reuters mentioned Exxon's collaboration with Tetra Technologies Inc. to exploit over 6,100 acres of lithium-rich brine in Arkansas. Moreover, Exxon acquired more than 100,000 acres in Arkansas from privately held Galvanic Energy earlier this year.

Exxon's venture into the lithium industry hinges on selecting a direct lithium extraction (DLE) technique to extract lithium from the brines, a decision that remains pending. Currently, no DLE technology has been successfully commercialized, despite intense competition among various businesses striving to be the first.

Furthermore, Exxon's move comes amidst heightened interest from traditional energy firms and other players in innovative technologies aimed at boosting the global supply of this lightweight metal.

Exxon's rapid entry into the lithium market poses challenges, with the need to adopt a viable DLE solution at the forefront of their strategic considerations.

(Inputs from Reuters)

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ExxonMobil is reportedly in talks with Tesla, Ford Motor, Volkswagen, and other automakers to supply lithium for electric car batteries, as stated by individuals familiar with the matter, according to a Bloomberg Law report cited by Reuters.

ExxonMobil is reportedly in talks with Tesla, Ford Motor, Volkswagen, and other automakers to supply lithium for electric car batteries, as stated by individuals familiar with the matter, according to a Bloomberg Law report cited by Reuters. However, discussions are likely in the early stages as ExxonMobil currently lacks the means to produce and supply this vital component for electric vehicles. Additionally, Exxon has been engaged in negotiations with International Battery Metals for licensing Direct Lithium Extraction technology, according to Reuters. In a separate report last month, Reuters mentioned Exxon's collaboration with Tetra Technologies Inc. to exploit over 6,100 acres of lithium-rich brine in Arkansas. Moreover, Exxon acquired more than 100,000 acres in Arkansas from privately held Galvanic Energy earlier this year. Exxon's venture into the lithium industry hinges on selecting a direct lithium extraction (DLE) technique to extract lithium from the brines, a decision that remains pending. Currently, no DLE technology has been successfully commercialized, despite intense competition among various businesses striving to be the first. Furthermore, Exxon's move comes amidst heightened interest from traditional energy firms and other players in innovative technologies aimed at boosting the global supply of this lightweight metal. Exxon's rapid entry into the lithium market poses challenges, with the need to adopt a viable DLE solution at the forefront of their strategic considerations. (Inputs from Reuters) WATCH WION LIVE HERE

ExxonMobil in lithium supply talks with Tesla, Ford: Report

The initiative taken by major companies to shift from Petrol based cars and manufacture electric cars but what if that shifting to battery-powered vehicles is still harming our environment. Watch this report to know more.

WION Climate Tracker: Lithium batteries reveal dark side of our electric fortune

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Global Lithium price crash forces Argentina's mining companies to scale back

GM commits USD 625 million to strategic Lithium joint venture

Major fire at French recycling plant engulfs 900 tonnes of lithium batteries

ExxonMobil in lithium supply talks with Tesla, Ford: Report

WION Climate Tracker: Lithium batteries reveal dark side of our electric fortune