Allkem and Xantippe shore up lithium investments in Argentina

Australian miners Allkem and Xantippe Resources are preparing lithium investments in Argentina's Catamarca province.

While Allkem will use a US$180mn loan from a World Bank unit to boost the Sal de Vida project, Xantippe has set out to raise up to US$31mn to finance its growth plans.

The chemical producer Allkem announced on Tuesday that the loan from the International Finance Corporation (IFC) will allow it to finance the construction and operation of a battery-grade lithium carbonate plant that will operate with brine extracted from the Salar del Hombre Muerto.

As part of the Sal de Vida initiative, production of 15,000t/y of lithium carbonate equivalent is estimated in the first stage starting next year.

Xantippe, which owns the Carachi project, in which it is investing the equivalent of around US$407mn, has made a US$5mn proposal to Minera Collasuyo in Argentina to acquire 25% of the Fundos del Plata properties in Catamarca, it said in a corporate presentation.

In addition, Sydney-based Xantippe is looking to raise some US$31mn from its shareholders to boost its expansion strategy in lithium projects in Argentine territory. This will include exploration, technologies, logistics, operation and working capital, it added in the document.

This company currently owns eight properties totaling 21,900ha.

Argentina owns 35% of the global lithium resources and is in the crosshairs of various investors.

Lithium projects, South America triangle. Credit: Xantippe