Argentina is set to sign a new agreement with the United States aimed at boosting investment and trade in critical minerals such as copper and lithium, a State Department official announced. This deal, to be signed during US Under Secretary of State Jose Fernandez’s visit to Argentina, is part of a broader US strategy to strengthen supply chains for essential metals while reducing dependence on China.
President Javier Milei’s administration will formalize the agreement as part of an effort to attract foreign investment in Argentina’s underutilized mineral resources. The agreement will facilitate Argentina’s engagement with the Minerals Security Partnership, a US-led coalition of 14 countries and the European Union focused on securing supply chains for minerals used in electric vehicle batteries and solar panels, and adhering to stringent environmental standards.
“This agreement allows Argentina to make its case to 14 countries and the EU simultaneously,” Fernandez stated in an interview ahead of the announcement. “The goal is to attract investments that will support community development, drive economic growth, and comply with national regulations.”
In addition to the deal with Argentina, Fernandez is scheduled to visit Ecuador and Peru for discussions on trade, investment, sustainable agriculture, and the Americas Partnership for Economic Prosperity.
The US-led initiative, launched in 2022, has primarily led to high-level discussions rather than concrete investments. Although President Milei is committed to aligning with the US, Argentina faces challenges in shifting away from its substantial trade relationship with China, its second-largest trading partner after Brazil.
Ahead of the signing, the State Department has invited participants to a Minerals Security Partnership forum in Buenos Aires on August 23, highlighting investment opportunities in Argentina’s lithium and copper sectors. Despite these efforts, Argentina currently misses out on incentives for lithium production under the US Inflation Reduction Act of 2022, due to the lack of a free-trade agreement with the US. Argentine officials continue to seek access to these benefits.
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