Israeli companies eye opportunities in Argentina's lithium industry

Israeli firm Xtralit unveiled plans to invest US$104mn in Argentina’s lithium industry during Argentine President Javier Milei’s state visit to Israel.

Furthermore, Israel's state-owned Mekorot will reinforce a cooperation agreement with several Argentine mining provinces experiencing water scarcity.

Xtralit will invest in lithium exploration in Argentina, promote its direct lithium extraction (DLE) technology and open an R&D laboratory headed by local scientists, the Milei government and the Israeli firm said last week.

After having verified the effectiveness of the DLE solution in salt flats in Salta and Catamarca provinces, the Rehovot-based company decided to invest in Argentina.

It also has plans to install a plant to produce lithium ferro-phosphate (LFP), a key cathode material for the manufacture of batteries for electric vehicles, Xtralit said in a release.

The Xtralit DLE tests began in the Dead Sea, on the border of Jordan and Israel, with a lithium concentration of around 20ppm, allowing it to verify that the technology would be suitable to operate in salt flats with low lithium content and high levels of impurities, the company said.

Argentina’s lithium deposits include the Salar de Hombre Muerto and the Salar de Antofalla in Catamarca province, the Salar de Rincón in Salta, and the salt flats of Olaroz and Cauchari in Jujuy.

But Xtralit has plans that go beyond the so-called Latin American Lithium Triangle and is looking at extracting the light metal from wastewater produced by the oil and gas industry, and from geothermal brines.

In Chile, the company has been showcasing its technologies and was one of the finalists in the calls made by local lithium producer SQM to identify innovations in the industry.

Mekorot, for its part, has extensive knowledge of desalination plants to make seawater drinkable in a desert country like Israel, where 60% of the territory is arid.

The Argentine State and the Israeli company have an agreement since 2022 to reform the management of water resources in the provinces of Catamarca, Santa Cruz, San Juan, Formosa, La Rioja, Río Negro and Mendoza.

Last year, the first three of those provinces, along with Jujuy, Salta and Catamarca, accounted for 98.4% of Argentina's mining exports, with a total of just over US$4bn, up 4.3% compared to 2022.

Foreign minister Diana Mondino said her office will provide all its support for the two companies to open markets in Argentina.