Rare production: Russia conducts negotiations in Argentina on the development of lithium deposits

Domestic businesses are discussing mining projects in Argentina. These negotiations are not advertised, but the Argentine side is demonstrating readiness for dialogue, Russian Ambassador to Buenos Aires Dmitry Feoktistov told Izvestia. A key priority for Moscow is scarce lithium, the basic raw material for the production of modern batteries and energy storage systems. At the same time, ties in the oil and gas sector are strengthening: a joint specialized forum is scheduled for autumn 2026. The intensification of contacts is taking place at a time when the United States is seeking to block the presence of Russia and China in the region.

How much lithium does Argentina have?

Representatives of Russian companies regularly visit Argentina to discuss joint mining projects with local partners, said Dmitry Feoktistov, the Russian Ambassador to Buenos Aires.

— Given the current political situation, such contacts are carried out mainly without excessive publicity. As far as we know, there have been no refusals from the official authorities to the appeals of Russian companies," the diplomat told Izvestia.

The Ambassador did not specify which metals the Russian companies were discussing, but rather mining in general. However, Russia's main interest in the Argentine subsoil has long been known.: this is lithium. Earlier, the Argentine Ambassador to Moscow, Enrique Ignacio Ferrer Vieira, told Izvestia that several Russian companies had opened representative offices in the country and were engaged in projects related to the development of mineral deposits, primarily lithium. However, most of them are in the initial stages.

The demand for this metal in the world is growing rapidly: lithium is needed for the production of batteries, electric vehicles and high-tech energy storage systems. It is also in demand in the energy sector.

— Lithium is critically important for the development of renewable energy and storage systems. According to the plans of the Ministry of Energy, the construction of an additional 450 MW of lithium storage units will balance the energy sector of the Southern Federal District, Crimea and the North Caucasus," Mikhail Khachaturian, associate professor at the Financial University, explained to Izvestia.

Russia has its own reserves of about 3.5 million tons of lithium oxide. This is enough to meet the needs of the Russian economy. However, its production stopped in the 1990s and has not yet been restored, said Vadim Kovrigin, Associate Professor at Plekhanov Russian University of Economics.

Although work is underway in this direction. For example, Rosatom, together with Norilsk Nickel, is developing the Kolmozersky deposit in the Murmansk Region. The Polmostundra deposit is located in the same region. The first batches on an industrial scale will be produced there at the end of 2026-2027. In the meantime, Russia is dependent on supplies from abroad, which have become more complicated after the introduction of anti-Russian sanctions in 2022.

— The Ministry of Industry and Trade expects to overcome dependence on imports only by 2030. Therefore, the priority now is the development of its resource base. But it is important not to miss opportunities abroad," Vadim Kovrigin believes.

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Why is the project with Bolivia frozen?

Russia is not looking at Argentina by chance. Together with Chile and Bolivia, the country forms the so-called lithium triangle, which accounts for more than half of the world's metal reserves.

Bolivia has the largest reserves, but they are located in the Uyuni salt marsh, where there is a lot of magnesium and impurities. It is difficult to extract it without sophisticated technologies, so there is almost no industrial production in the country — about 2 thousand tons per year.

In 2024, Rosatom signed a contract with a Bolivian state-owned company for the construction of a lithium carbonate plant, but the parliament has not ratified it. In the fall of 2025, the center-right Rodrigo Paz came to power. The new administration initiated a large-scale audit of all lithium agreements concluded by the previous government, which put the fate of the Russian project in doubt.

Relations with Chile are also difficult. In December 2025, the ultra—right Jose Antonio Kast, a supporter of rapprochement with the United States, won the elections in the country. At the same time, Chilean lithium is already being exported to China and Western markets.

Argentina, with the world's second largest estimated reserves of 22 million tons, is the most predictable country in terms of doing business.

The search for lithium, however, is not limited to Latin America. Russia is actively eyeing projects in Africa. In particular, Moscow is discussing prospects for cooperation in this area with Mali, a country that is rapidly increasing production of this metal.

Why does Argentina need contacts with Moscow

Meanwhile, Argentina's contacts with Moscow are taking place under severe pressure from Washington. The administration of Donald Trump is openly trying to oust non-regional players, mainly Russia and China, from Latin America, and Argentine President Javier Miley adheres to a pro-American course and even applied for the status of a global partner of NATO.

— A number of countries have this status, including Afghanistan, Pakistan, Colombia and Mongolia. Russia is actively developing trade and economic cooperation with them. So if the application submitted by Argentina is satisfied, there will be no drastic changes in this area," Dmitry Feoktistov believes.

In general, the Argentine authorities adhere to a pragmatic policy, and economic contacts with Russia continue.

The country has some of the world's largest lithium reserves and is in dire need of investors, and the tight budget austerity pursued by Miley does not allow it to abandon external investments in energy and mining.

— Argentina demonstrates the classic model of a state balancing between geopolitical loyalty and its own resource interests. And in this balance, the economy invariably wins," Alisa Kazelko, an expert at the Valdai Club, said in an interview with Izvestia.

Moreover, the status of an ally of the United States eventually works into the hands of Moscow itself. Punishing Miley for contacts with Russia is unprofitable for Washington: it would undermine the reliance on right-wing politicians as an instrument of American influence in the region.

— Washington does not have any economic substitution tools comparable in terms of speed and conditions to the Russian or Chinese proposal. Therefore, a paradoxical situation is emerging: precisely because Miley is an ally of the United States, he gets the unspoken right to pragmatic cooperation with Moscow where it is beneficial to Buenos Aires," explained Alice Kazelko.

Lithium is not the only point of contact. The second is hydrocarbons: Russia and Argentina are preparing a joint oil and gas forum for autumn 2026.

— The date is being specified, but it is likely that it will be the first of October. The Association of Industrial Parks of Argentina provides assistance in the organization," Dmitry Feoktistov told Izvestia.

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The Roscongress Foundation is the organizer, and, according to the ambassador, Neuquen province, where Vaca Muerta is located, is the largest in the country and the second largest shale gas field in the world. The international oil and gas exhibition Oil and Gas will be held in the region almost simultaneously.

But mining there is difficult: the gas is trapped in dense rocks, and it can only be extracted by hydraulic fracturing, and these are expensive technologies and large investments. And here, according to experts, Russia has something to offer.

— Buenos Aires has ambitions to increase production and exports, while Russia has technologies, equipment, personnel and expertise. The United States could also become a technology donor, but Russian companies traditionally offer more attractive models of cooperation," said Mikhail Khachaturian.

Experts see the main value of the forum not in the deals signed on it.

— In fact, the forum is a tool that turns individual business trips into constant interaction, — explained Vadim Kovrigin.

For Russia, the Latin American direction is not just a struggle for scarce raw materials. By gaining a foothold in a region that Washington is accustomed to consider its zone of influence, Moscow receives a diplomatic counterweight and an argument in favor of the fact that its isolation did not take place. Each new project reminds the United States that control over the "backyard" is no longer absolute.

Nevertheless, the strength of these ties depends entirely on the political weather in the region, and it is extremely changeable. Bolivia has demonstrated by its example how easily doors that were once opened by a friendly Government can slam shut. Argentina remains a working destination, as long as it benefits Miley, and his pragmatism outweighs his loyalty to Washington.