The U.S. government announced that Under Secretary for Economic Growth, Energy, and the Environment, José Fernández, will travel to Argentina, Ecuador, and Peru from August 21 to 29, engaging key partners in the Western Hemisphere on critical mineral supply chains and developments in the Americas Partnership for Economic Prosperity, and to promote trade and economic opportunities with the United States.

Argentina possesses the world's third-largest lithium reserves. According to estimates from S&P Global Market Intelligence, Argentina produced 54,303 metric tons of lithium in 2023, accounting for about 5% of global production last year; the country has vast untapped resources of lithium and copper.

José Fernández stated in an interview with the Buenos Aires Herald that the U.S. is promoting diversification of critical mineral supply chains, "China controls two-thirds of the world's production of critical minerals... having only one seller is never a good thing." He also believes that China's monopoly and dumping in the global lithium market have led to a decrease in lithium prices from $80,000 per ton to $12,000 per ton between 2023 and 2024.

Of course, we know this is not the fact as the lithium market fluctuation is primarily impacted by the demand of global downstream market and supply from the lithium producers. Quite a couple of lithium processors in China are also suffering from the falling price of lithium.

In a statement, Argentine Foreign Minister expressed that both countries hope to "deepen bilateral cooperation on critical minerals and energy, as well as Argentina's participation in the U.S. strategic supply chains." The agreement ensures deeper cooperation between the two countries in the mining of metals such as lithium, "promoting trade and investment between the countries of the participants in the exploration, extraction, processing, and refining of critical mineral resources, as well as recycling and recovery." The Ministry also stated that the deal highlights "Argentina's potential as a reliable supplier of strategic resources." 

The government of President Javier Milei stated that "the goal is to raise awareness of investment opportunities and identify potential co-financing opportunities for critical mineral investments." The U.S. government said in a separate release: "By signing this Memorandum, the United States and Argentina are advancing their shared interest in supporting the energy transition and deploying clean energy technologies."

It is also reported that the U.S. has already signed similar agreements for the production of minerals with other countries in the region, such as Peru and Chile, including nickel and cobalt. Chile, along with Bolivia and Argentina, is part of the so-called "lithium triangle," an area that could contain more than half of the world's lithium reserves. According to data from the U.S. Geological Survey, in 2023, Argentina was the world's fourth-largest producer of the metal, behind Australia, Chile, and China.