Argentina-based lithium producer, Lithium Americas, has just announced a US$90 million investment from the automotive giant, Stellantis, that is expected to have music reverberations not only in the country’s lithium-rich landscape but the global lithium market as well.
The investment, which is denominated in Argentine peso units (Ar$) and has been agreed upon in a definitive line-of-credit agreement, is being seen as a major vote of confidence in the growing Argentine lithium industry.
The news has sent Lithium American’s shares soaring on the NASDAQ stock exchange, where the company has long been listed, as investors react to this megadeal that could potentially revolutionize the country’s battery metals sector.
This latest announcement comes only weeks after the approval of the Cauchari-Olaroz I Project in Jujuy, expected to become one of the largest lithium production locations in the world. The project is a joint venture between Primero Group, Geely New Energy Holding Ltd and Stellantis, with the latter investing US$90 million in the development of the location.
Lithium Americas CEO, Juan Pablo Zurita was optimistic about the investment, noting that it highlights Stellantis’s commitment to Argentina’s highly promising lithium sector. He also noted that the partnership with Geely, Stellantis’s new energy division, would bring technological advancements in battery chemistry and electric vehicle development, leading to further opportunities and economic development in Argentina.
The investment marks a new chapter in Argentina’s growing lithium sector and it is hoped that this will spark more interest in the country’s vast reserves and pave the way for greater economic growth for the entire region.