Argentina’s Y-TEC will be acquiring lithium from the American company Livent Corp. (NYSX: LTHM) in a significant move towards national battery manufacturing.
The announcement was made on Saturday by the National Mining Secretary, Fernanda Ávila and Y-TEC’s President, Roberto Salvarezza. Under the lithium supply agreement, Y-TEC will be supplied with lithium until 2025.
This acquisition is part of a broader government initiative to enhance the value chain around mining activity, stimulate local supplier development and create well-paid, formal employment opportunities.
Y-TEC is an Argentine technology company that specializes in the energy sector. It is a joint venture between YPF, Argentina’s leading energy company and the National Scientific and Technical Research Council (CONICET).
“We know that the production of battery-grade lithium carbonate is a process that involves a very high added value, while it promotes the development of local suppliers and generates formal and well-paid employment in the communities where it is established,” Secretary Avila said.
“We know that the production of battery-grade lithium carbonate is a process that involves a very high added value, while it promotes the development of local suppliers and generates formal and well-paid employment in the communities where it is established.”
Y-TEC anunció que ya cuentan con suministros de litio hasta 2025 para su esquema de desarrollo y producción, gracias a un convenio firmado con Livent y la provincia de Catamarca. pic.twitter.com/8eeT7KEqni
— Portal (@Mineria_Ar) July 1, 2023
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Lithium processing plant set to operate in September
In early 2023, a partnership between the province of Catamarca and Y-TEC led to an agreement where Livent will supply lithium carbonate to UNILIB, the first technological development plant for cells and batteries in Latin America. The plant, which will be launched in conjunction with the National University of La Plata, is set to start operations in September this year.
The plant will have an annual production capacity – measured in stored energy – of 15 MWh, equivalent to 2000 batteries for stationary storage of renewable energies or about 300 for electric cars.
“Soon we will launch UNILIB and start producing the first lithium-ion battery cells in the country,” said Salvarezza in a statement.
“It is important for us to have lithium carbonate to make a project that has more than 12 years of scientific research a reality. In this way, the first Argentine cells will be produced with lithium carbonate from Catamarca.”
Argentina is currently the fourth largest lithium producer in the world, following Australia, Chile and China, and the second in resources, only surpassed by Bolivia. In terms of reserves, it ranks third, below Chile and Australia. The country has an installed production capacity of 37.5 thousand tons of lithium carbonate and an average annual production of 33 thousand tons.
In the short term, five lithium projects that are currently under construction are expected to go into production in the provinces of Jujuy, Salta, and Catamarca. These include Mariana by the Chinese firm, Ganfeng Lithium (HKEX: 1772); Centenario-Ratones by the French company Eramet (OTCMKTS: ERMAY); Sal de Oro by the South Korean company POSCO (NYSE: PKX); Sal de Vida by the Australian company Allkem Limited (OTCMKTS: OROCF); and Tres Quebradas by the Chinese company, Zijin Mining Group.
These projects, along with two operating projects expanding their capacities, will increase the productive capacity to more than 200 thousand tons of lithium.
