Argentine President Javier Milei's government approved a significant investment package on Thursday for the expansion of a lithium mine with strategic Chinese involvement. According to reports from Bloomberg, the joint venture led by China's Ganfeng Lithium Group will invest $1.24 billion in the mine expansion in the province of Jujuy. The project involves partnerships with Lithium Argentina AG, which has US-listed shares, and state-owned JEMSE.
As reported by Bloomberg, Ganfeng Lithium Group serves as the largest shareholder of the project, owning 47% of the mine. The joint venture will receive legal guarantees and tax breaks as part of Milei's sweeping program known as RIGI (Registro de Inversiones de Gran Impacto), which is designed to attract large investments. Economy Minister Luis Caputo posted about the investment on X, though he made no reference to the companies involved.
According to Bloomberg, the Argentine government also approved PSJ Cobre Mendocino (previously known as San Jorge) into the RIGI regime. This project would be the first large metal mine in the winemaking province of Mendoza and is estimated to cost approximately $891 million. Combined, these two projects are projected to create 8,000 jobs directly and indirectly.
As reported by Bloomberg, Caputo indicated that Argentina has approved 16 projects through RIGI that have pledged almost $30 billion in investments, with another 20 proposals currently under evaluation. The approvals represent a significant shift for Milei, who has prioritized ties to the Trump administration and previously blocked state-run Chinese companies from other projects. This rare approval for Chinese investment comes despite Milei's broader efforts to strengthen ties with the United States.
