Lithium Argentina Wins RIGI Backing for 45,000-Ton Cauchari-Olaroz Expansion
Updated
Updated · ChemAnalyst · May 16
Lithium Argentina Wins RIGI Backing for 45,000-Ton Cauchari-Olaroz Expansion
6 articles · Updated · ChemAnalyst · May 16
Lithium Argentina secured committee approval under Argentina’s RIGI regime for Stage 2 at Cauchari-Olaroz, with a formal government resolution expected in June 2026.
The expansion would add 45,000 tonnes a year of lithium carbonate equivalent to the project’s existing 40,000-ton capacity, lifting total output potential to 85,000 tonnes.
Stage 1’s strong cash flow and a March 2026 resource update helped de-risk the project, while RIGI offers 30 years of fiscal, customs and FX stability plus a 25% tax rate.
The plan requires at least $200 million of verified investment, including $80 million within two years, and is expected to create more than 8,000 direct and indirect jobs.
For Argentina, the approval supports Milei’s push to expand lithium exports and deepen its role in global battery supply chains, where Chinese-linked investment remains significant.
Will Argentina’s new investment policy create national wealth or just fast-track the export of its critical lithium reserves?
Can Argentina's president use Chinese investment to fix the economy while still keeping his American allies close?
Argentina’s Lithium Leap: $1.24 Billion Ganfeng Expansion, RIGI Incentives, and the Geopolitical Crossroads of US-China Rivalry
Overview
In May 2026, Argentina approved a $1.24 billion expansion of a lithium mine half-owned by Ganfeng Lithium Group, marking a pragmatic shift for President Milei, who has previously emphasized strong US ties. This decision highlights Argentina’s urgent need to attract foreign capital and strengthen its role as a key supplier of minerals for the global clean energy transition. The Milei administration is working to 'bullet proof investments' for companies that have been cautious due to past state intervention, using the Incentive Regime for Large Investments (RIGI) to offer attractive incentives and long-term stability.