Jujuy has partnered with Italy to produce batteries in Argentina

The "lithium revolution", as some call it, is already under way in Argentina.

In the silent war of the past few years, companies from Japan, South Korea, China, Australia, the United States, Canada and France in the north of the country have been involved in the war. Argentina, a key factor should be added: this white gold industry will no longer be solely extractive to become a local producer of batteries around the world.

Last week was the cornerstone of this revolutionary project with the start of a plant to be managed by the Jujuy Litio company, integrated by JEMSE (Jujuy Energy and Mining, a State company) and the Italian company SERI, which a long history in the manufacture of lithium batteries in Europe.

"The collaboration between the Italian company and the province of Jujuy is a totally innovative initiative as it will transform a natural resource, lithium, into an engine of economic development." Thanks to the Italian know-how, Juju's productive system in the international value chain in a strategic sector for the future of both countries, "said the Italian ambbadador to Buenos Aires, Giuseppe Manso, who inaugurated in Jujuy this project alongside the radical governor Gerardo Morales and the Deputy Minister of Foreign Affairs, Gustavo Zlauvinen.

The current project is a public-private enterprise that will work in coordination with the Lithium Institute for the incorporation of specialized technologies and the transfer of knowledge of the entire lithium process. That is to say that unlike foreign companies that were until now based in Jujuy, Salta or Catamarca to extract lithium and take it to their country for battery production, the novelty is that the batteries will be made in Argentina.

And not only that: the Italian company that will produce it in Jujuy will have greater exclusivity than the Asian countries in terms of battery entry into the European Union, according to Infobae.

According to official data from the Ministry of Mines, it is estimated that Argentina has already invested some 2 billion US dollars in at least 53 foreign capital projects. The Argentine Lithuanian map established by the United States Geological Survey and the Argentine Geological Survey revealed that in Argentina, there are approximately 873,000 hectares available for lithium mining with 53 projects. extraction, including 27 with mining concession contracts.

In this way, the Italian-Argentinian project that has just been inaugurated is a real revolution since Argentina will no longer be a country endowed with an extractive lithium industry, but a producer of essential equipment for mobile phones, cars electric or household appliances. .

As explained by Governor Morales, the steps of the JEMSE project and the SERI project include the badembly of a lithium battery badembly pilot unit, the manufacture of lithium battery cells and the production of active material. from the material extracted from salares jujeños according to sustainable standards and respectful of the environment.

"We are launching this project that we will execute in Perico, which is characterized by its strategic positioning, from the new airport, the free zone, the railway, the industrial park and highways", stressed Morales during the meeting. 39, which discovered it. the basal plate of the work.

With the foundation stone of Jujuy lithium battery factory, bet on production in a strategic sector and from the beginning, a total investment of $ 60 million has been set.

The industrial agreement that gave birth to Jujuy Litio SA, for which the plant contributed 40% of the capital, provides that the provincial government will provide the mixed plant only 5% lithium carbonate produced in Jujuy .

The development of this company in Jujuy has a main reason: this province is located in the center of the "lithium triangle" (northwestern Argentina, northern Chile and Bolivia), where 85% of this chemical element is Concentrate on everyone.

"Lithium carbonate is expected to be locally processed with added value and marketed in Argentina and other markets, with great benefits in terms of creating new jobs," he said. Ambbadador Manso to Infobae.

In the meantime, Governor Morales reminded that in Jujuy "he produced lithium carbonate of maximum purity" and said that this element "is subject to a complex industrial process that does not occur. not develop in many parts of the world.The resulting material is applied to the manufacture of battery cells and the process is completed in the battery badembly plant. "

For its part, the ambbadador of Italy said that this agreement meant "renewing the commitment between Italy and Argentina by unifying the public and the private sector, we will develop a production destined not only for Argentina but also for other countries ". Manzo said he was "very proud" of the agreement, because "this investment is like a child conceived in the embbady strongly desired by both countries, and we hope to see him grow up quickly and healthily, as well as the relations between the two countries ". .

At the same time, Deputy Foreign Minister Zlauvinen stressed that "the big challenge is to share the complementarity between our companies so that these projects generate quality workplaces throughout the world" 39; Argentina. "

Regarding the project, the vice-chancellor stressed the need to seek an alternative to clean energy fossil fuels, such as lithium. "We have to see how we use this to be able to get out of the world and be competitive, this event is a break point from what Jujuy can do," Zlauvinen concluded.

To get an idea of ​​the size of such a company, with the annual lithium extraction in Argentina, a country like Japan can produce about 50% of the batteries for mobile phones and electrical appliances in the world.

Another essential fact explains this silent war of foreign capital launched in northern Argentina for the exploration and exploitation of lithium: Bolivia nationalizes its reserves and does not allow investments in this high-value product, whereas Chile was limited to recent years. operating licenses for "white gold" in the mountains. Thus, Argentina has become the Mecca of foreign companies.

In addition, the Ministry of Mines of the Nation, believes that lithium mining will receive up to 2019 an investment of more than 700 million dollars with the completion of projects only in Jujuy and Catamarca. Added to this is the heavy investment made in recent years in Salta for more than 400 million US dollars.

In this battle to access documents of exploration and exploitation of lithium, capitals of Japan, South Korea, China, Australia, United States, Canada and France have intervened in recent years.

The Jujuy Mining Secretary, Miguel Soler, told Infobae that "after many years of lack of standards, it has been decided to create the Lithium Table that will contain a protocol of good practices for the l '. exploitation of this product ".

Some of the new rules of the game that Catamarca, Jujuy and Salta will impose on this lithium board include new requirements for an environmental protocol for companies, annual water balance studies and a redefinition of the guidelines for the issuance of licenses. joint exploitation. The royalties that the provinces retain in this product represent 3% of the mine site. It will not change at least for the moment.

In return, a strong increase in the competitiveness of mining companies is expected after the sanction of early repayment of VAT to companies in the sector, as proposed in the tax chapter of the reforms proposed by the national government.

It is estimated that 12,000 tonnes of lithium are obtained each year, but projects are under way to increase production to 60,000 tonnes / year. The bet of the Italo-Argentine project in Jujuy could be the answer for the "lithium revolution" is really a revolution for the local industry and not only extractive.

Discover the latest news in the digital economy, startups, fintech, business innovation and blockchain. CLICK HERE
I knew the value of the dollar in Dollar Today and followed minute after minute the quote and the behavior. CLICK HERE