Lithium industrialization efforts expand in Argentina and Mexico

Efforts to industrialize lithium production and battery manufacturing are gaining momentum in Argentina and Mexico, though significant economic and technical hurdles remain.

In Argentina, the province of Jujuy possesses substantial lithium resources, but experts note that transitioning from raw material export to battery manufacturing requires massive investment and high-scale production. Chemist Victoria Flexer emphasizes that to compete with dominant Asian markets, local facilities must be large-scale and highly automated to achieve cost-competitive unit prices.

In Mexico, the federal government has approved a 175 million peso project funded by the Mexican Petroleum Fund to bolster the lithium value chain. This investment is aimed at constructing a battery assembly plant linked to the Olinia electric vehicle project. While the state-owned entity Litio para México manages a larger budget primarily for operational expenses, this new allocation represents a strategic move toward domestic energy storage and renewable energy transition capabilities.