Argentina is expected to sign a deal with the US that would draw more investment and trade in the critical minerals sector, according to a State Department official.
President Javier Milei’s government will sign a memorandum of understanding with the US this week, during a visit to Argentina by US Under Secretary of State Jose Fernandez.
Fernandez will also visit Ecuador and Peru “to engage key partners in the Western hemisphere on critical minerals supply chains and developments,” according to a statement on Wednesday.
The agreement with Argentina will make it easier for the South American nation to work with countries under the Minerals Security Partnership (MSP) — a US-led group that includes 14 countries, and the European Union.
Launched in 2022, the MSP aims to wind back Western dependence on China for critical and battery minerals — those used in electric vehicles and other technologies — by linking foreign investors with mining projects, all the while adhering to strict environmental standards.
“It’s a way for Argentina to literally make pitches to 14 countries and the EU in one fell swoop,” Fernandez said in an interview with Bloomberg.
“Producing countries want the kinds of investments that we’re proposing, investments that will benefit communities, that will bring growth, that will observe national laws.”
Although the MSP has helped drive high-level discussions, few tangible investments have been made.
It also does not address Argentina’s inability to receive incentives for lithium production under the US Inflation Reduction Act, which is partly aimed at accelerating the adoption of electric vehicles. Argentina is currently locked out of those benefits due to the absence of a free-trade deal with the US.
Write to Oliver Gray at Mining.com.au
Images: US Under Secretary of State Jose Fernandez (via X/@State_E)
