Argentina is projected to become the leading lithium producer in South America by 2035, according to forecasts from GEM Mining Consulting. The country is expected to produce 481,000 tons of lithium carbonate equivalent annually in that year, compared to 426,000 tons for Chile. Currently, Argentina ranks as the world’s fourth-largest lithium producer, behind Australia, China, and Chile, all within the Lithium Triangle region of the Andes.
The shift in ranking hinges largely on the development of Argentina’s Pozuelos-Pastos Grandes project, a major mining venture led by Lithium Argentina in partnership with Chinese mining company Ganfeng Lithium. The project, located in northern Argentina, is anticipated to produce approximately 150,000 tons of lithium annually once operational. The development requires a total investment of $3 billion and will be completed in three phases. The companies are currently seeking additional funding partners for the initiative. GEM Mining Consulting cautioned that without this project’s success, Argentina’s lithium production would likely decline in coming years.
Meanwhile, other major producers are expected to expand capacity. Australia is forecast to produce 921,100 tons of lithium in 2030, increasing to 966,400 tons by 2035, while China is projected to reach 615,700 tons in 2030 and 618,700 tons in 2035. Global lithium demand continues to be driven primarily by two sectors: electric vehicle manufacturing and battery storage systems.
Battery storage has gained particular importance for electrical grids incorporating large quantities of renewable energy sources such as wind and solar power, as these systems require energy storage solutions to address supply-demand mismatches. Additionally, geopolitical developments have reinforced the strategic value of battery storage and domestic energy security considerations. The electric vehicle market, particularly in China, has historically driven lithium consumption, though market saturation in major regions means future demand growth will depend on adoption across emerging markets and other global regions.
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