With US President Donald Trump rolling out his tariffs on various commodities and countries unabated, American Salars Lithium (CSE:USLI) is hedging its portfolio to avoid getting caught up in the fallout.
The Vancouver-based company says with the potential for new tariffs on lithium imports under the Trump administration, American Salars has positioned itself to secure a stable, tariff-free lithium supply through its Black Rock South Lithium Project in Nevada.
The project is located around 116km north of the Tesla Gigafactory, 150km southwest of Lithium Americas’ (TSX:LAC) Thacker Pass mine — which is the most advanced development-stage lithium project in Nevada — and 346km northwest of the US’ only producing lithium operation, the Silver Peak lithium brine mine owned by Albemarle (NYSE:ALB).
The explorer also has projects in Canada, Brazil and Argentina after recently acquiring several new assets.
Earlier in March, American Salars inked a letter of intent to acquire the Salar De Pocitos Project in the Salta Province of Argentina.
This was preceded by deals to buy the Leduc East Lithium Project in Québec and the Jaguaribe Project – a lithium-cesium-tantalum deposit also hosting rare earth elements (REE) and a suite of critical minerals – in northern Brazil.
CEO Nick Horsley says the lithium market is evolving rapidly, and shifting trade policies could create new challenges.
While the lithium market is set to benefit from surging demand for electric vehicles (EV), battery storage and clean energy technologies, potential US tariffs on lithium could disrupt supply chains and raise costs for US manufacturers.
Meanwhile, if tariffs are imposed on lithium imports from key suppliers like China, Argentina, and Chile, American Salars says the cost of raw materials could rise, impacting battery production and the broader EV market.
“By securing strategic lithium assets in key regions of North and South America, we have hedged ourselves geopolitically to meet the growing demand driven by electric vehicles and renewable energy storage,” Horsley says.
“This strategy reduces our exposure to uncertain supply chains and trade war implications.”
Talk of Argentina and the US entering a trade pact also bodes well for American Salar’s Pocitos flagship project.
Horsley says it positions the project as a critical asset in a stabilising Western supply chain, especially as US policies increasingly prioritise domestic and allied sourcing of critical minerals.
Global trade tensions continue to escalate as Trump threatens to place further tariffs on the European Union (EU) and Canada launches retaliatory tariffs.
Trump’s most recent move was to place tariffs on all steel and aluminium imports into the US.
Canada immediately countered with its own 25% levy on around C$30 billion ($33 billion) of US made goods.
Meanwhile, the EU is reportedly considering introducing retaliatory tariffs next month, which has prompted Trump – who has held office less than two months so far in his second term – to promise further penalties if the counter tariffs are introduced.
“Whatever they charge us, we’re charging them,” Trump reportedly said at the White House on Thursday (AEDT).
American Salars says its strategic positioning not only strengthens the company’s role in the US lithium market but also supports North America’s push for energy independence in the face of shifting trade policies.
Write to Angela East at Mining.com.au
Images: American Salars
