Argentinian Presidential Candidate Milei Greenlights Incentives for Lithium Mine Expansion Amid China Ties Concerns

Argentina's President Javier Milei Takes Unusual Step to Attract Investments

In a rare move, Argentine President Javier Milei's government has approved a series of incentives for the expansion of a lithium mine half-owned by a Chinese firm, Ganfeng Lithium Group. The joint venture, led by Ganfeng, will invest $1.24 billion in the expansion of its mine in the province of Jujuy, alongside partners Lithium Argentina AG and state-owned JEMSE.

According to Economy Minister Luis Caputo, the joint venture will receive legal guarantees and tax breaks as part of Milei's RIGI program, which is designed to attract large investments. Ganfeng is the largest shareholder of the project, owning 47% of the mine. This move is unusual, as Milei had previously blocked Chinese state-run companies from other projects in Argentina, a nod to his ties with President Donald Trump.

The Argentine government also approved PSJ Cobre Mendocino, previously known as San Jorge, into the RIGI regime. This project, which would be the first large metal mine in the winemaking province of Mendoza, is expected to cost approximately $891 million. The two projects combined are expected to create 8,000 jobs directly and indirectly.

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Milei's administration is attempting to bulletproof investments for companies that have largely shunned Argentina after decades of state intervention. The president wants to position Argentina as a major supplier of minerals critical to the global shift toward clean energy, electrification, and advanced technologies.

The approvals add to a pipeline of mining and energy projects seeking entry into RIGI, which offers legal stability for up to three decades, among a series of other financial incentives. Milei is also turning to mining to help reverse Argentina's chronic shortage of hard currency, although some investors remain cautious given the country's history of capital controls and policy swings.

According to Caputo, Argentina has approved 16 projects through RIGI that altogether have pledged almost $30 billion of investments. Another 20 proposals are currently under evaluation.

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