China's Zijin Mining (2899) will invest US$380 million (HK$2.95 billion) to construct a lithium carbonate plant in Argentina via local subsidiary Liex.
Zijin had last year purchased Canada's Neo Lithium, which operates the Tres Quebradas project.
Argentina, which sits within South America's so-called "lithium triangle" along with Chile and Bolivia, is according to US Geological Survey data the world's fourth-largest producer of the battery metal, behind Australia, Chile and China. The global lithium price has shot up over the past 12 months on expectations of a boom in demand to make the batteries needed to power a shift to electric vehicles.
The investment was announced after a meeting between Argentine officials and executives of Zijin, Liex and Neo Lithium. "For the Tres Quebradas project, the plant is scheduled to start construction this year and to commence production by the end of 2023," an Argentinian statement said.
In other mining activity, Chinese mineral exploration company MMG (1208) said the Las Bambas copper mine in Peru has been forced to progressively cut operations due to a new blockade on public roads by local communities opposing operations.
The operational halt was expected to continue for about two more weeks.
