Elon Musk, US sniffing around Argentina's untouched Lithium reserves

By Al Mayadeen English
Source: Agencies
24 Dec 2023 14:15
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Argentine President Javier Milie reveals that he was approached regarding the country's vast lithium reserves by American capitalists and the government.

An aerial view of one of two Lithium production plants in Argentina, owned and operated by Livent in Catamarca, Argentina (Livent)

Argentina's President Javier Milei said he received a call from Tesla CEO Elon Musk, indicating that the tech tycoon and the US government are interested in the country's lithium reserves.

The recently-elected President made the remarks during an interview for the Argentinian Canal 13 broadcaster on Saturday.

"I got a call from Elon Musk. He is very interested in lithium, as is the US government and many American companies. But they need a legal framework to guarantee that property rights are respected," Milei said.

Argentina and its neighbors, Chile and Bolivia, account for 56% of the global lithium reserves, garnering exponential importance, as the world turns toward more sustainable forms of energy.

While Argentina boasts the highest proved reserves among Latin American nations, commanding an impressive 21% of the global reserves, its market impact falls short of Chile's, constituting 6% of worldwide sales. In contrast, Chile takes the lead with a notable 20-percentage-point advantage in global sales.

Argentines brace for austerity

The President's comments come after he revealed a series of budget-cutting and "deregulation" measures, in line with his anarcho-capitalist views, which he believes will manage to push Buenos Aires out of its long-lasting economic torment.

Milei eliminated or changed more than 300 regulations via a presidential decree, including on rent and labor practices. In a televised speech from the presidential palace, flanked by his cabinet "the goal is to start along the path to rebuilding the country... and start to undo the huge number of regulations that have held back and prevented economic growth."

Latin America's third-biggest economy is suffering from inflation surpassing 160 percent year-on-year, with 40 percent of Argentinians living in poverty.

Milei took office 10 days ago, after being elected last month, and pledged to curb inflation but warned that economic "shock" treatment is the only solution for the economy. Some of the suggested changes include the elimination of a law regulating rent and preventing the privatization of state enterprises.