Maria Fernanda Avila, chair of Argentina's Federal Chamber of Deputies Mining Committee, speaks at a press briefing with Korean media in Buenos Aires on Aug. 17 (local time). Maria Fernanda Avila, chair of Argentina’s Federal Chamber of Deputies Mining Committee, speaks at a press briefing with Korean media in Buenos Aires on Aug. 17 (local time).

“Posco is no longer an outside foreign company. It is the starting point of a strategic partnership between Korea and Argentina — a company that has put down roots in our region and will be with us for a long time to come.”

Maria Fernanda Avila, chair of Argentina’s Federal Chamber of Deputies Mining Committee, offered that assessment of Posco Holdings’ lithium project in Argentina at a press briefing with Korean media held Aug. 17 (local time) in Buenos Aires.

Avila is a mining specialist who previously served as mining minister of Catamarca Province and as director of the National Mining Secretariat, a deputy minister-level post. She currently represents Catamarca in the federal Chamber of Deputies and chairs its mining committee, overseeing mining policy and legislation.

“Posco is not simply a company that extracts minerals and takes them abroad — it is investing in the region, building production capacity and helping local businesses and workers grow alongside it,” she said. “I have a very high regard for the way its long-term investment is translating into local capability and development.”

A view of the lithium hydroxide plant — the downstream processing facility of Posco Argentina's Plant 1 — in Guemes, Salta Province, Argentina, on Aug. 18 (local time). The facility produces battery-grade lithium hydroxide using brine concentrated at the Hombre Muerto salt flat. [Posco Holdings] A view of the lithium hydroxide plant — the downstream processing facility of Posco Argentina’s Plant 1 — in Guemes, Salta Province, Argentina, on Aug. 18 (local time). The facility produces battery-grade lithium hydroxide using brine concentrated at the Hombre Muerto salt flat. [Posco Holdings]

Avila particularly praised Posco for being the first company to open the door to cooperation between Korea and Argentina.

“The United States and China already had relationships across a range of industries, but Posco was the first to launch full-scale cooperation with Korea in the mining sector,” she said. “The Posco project is the starting point of a long-term strategic partnership between the two countries.”

She added that the arrangement represented a mutual-benefit model — providing Korea with a stable supply of critical minerals needed for the battery industry while bringing Argentina investment, employment, technology transfer and supply chain development. “Posco serves as a bridge connecting natural resources with industry and technology,” she said.

“Korea is not yet among the largest investing countries by volume — not like Canada or Australia — but its strategic importance is very significant,” Avila said. “Posco’s lithium project is Argentina’s representative flagship project.”

A map showing the locations of Posco Holdings' lithium project sites in Salta and Catamarca provinces, Argentina. [Posco Holdings] A map showing the locations of Posco Holdings’ lithium project sites in Salta and Catamarca provinces, Argentina. [Posco Holdings]

The impact of Posco’s investment is also visible in Argentina’s national economic indicators. Last year, Argentina’s lithium exports reached $905 million, accounting for about 15 percent of total mineral exports. In the first half of this year alone, exports hit $1.1 billion, already surpassing the full-year figure for last year. Production capacity has grown more than fivefold — from 35,000 metric tons of lithium carbonate equivalent in 2022 to 186,000 metric tons today — with a target of 655,000 metric tons by 2035.

“Posco has played a very important role in this growth,” Avila said. “It has contributed not only to expanding exports but also to developing local talent, building supply chains and improving infrastructure.” She added that the company was “not simply developing a single mine, but raising the competitiveness of the entire regional economy.”

Maria Fernanda Avila, chair of Argentina's Federal Chamber of Deputies Mining Committee, and Yang Won-jun (right), head of Posco Holdings' communications division, pose for a photo after a press briefing with Korean media in Buenos Aires, Argentina, on Aug. 17 (local time). [Posco Holdings] Maria Fernanda Avila, chair of Argentina’s Federal Chamber of Deputies Mining Committee, and Yang Won-jun (right), head of Posco Holdings’ communications division, pose for a photo after a press briefing with Korean media in Buenos Aires, Argentina, on Aug. 17 (local time). [Posco Holdings]

Avila also highlighted the significance of the large-scale investment incentive regime known as RIGI, which Posco became the first Korean company to receive approval under late last month.

“RIGI is not simply a tax benefit — it requires passing assessments of technical merit, economic viability, a business plan and a supply chain development strategy,” she said. “It means the Argentine government has officially recognized the competitiveness and commercial soundness of the Posco project. Posco will now be able to carry out its operations with stability for the next 30 years.”

An aerial view of the lithium evaporation ponds developed by Posco Argentina at the Hombre Muerto salt flat in Argentina. The upstream processing facility concentrates lithium by allowing brine to evaporate naturally. [Posco Holdings] An aerial view of the lithium evaporation ponds developed by Posco Argentina at the Hombre Muerto salt flat in Argentina. The upstream processing facility concentrates lithium by allowing brine to evaporate naturally. [Posco Holdings]

Avila also described the project as a meaningful precedent in Argentine administrative history. Posco’s lithium Plant 2, currently under construction, straddles the border between Catamarca and Salta provinces. “This is the first case of two provincial governments jointly advancing a single lithium project,” she said. “It is an important milestone that will serve as a model for future lithium development projects.”

“The relationship between Korea and Argentina has great potential to develop beyond simple investment cooperation into a long-term strategic partnership for jointly building a critical minerals supply chain,” Avila said. “The Posco project is both the starting point and the most symbolic example of that.”

kwater@heraldcorp.com

This content was produced with the assistance of AI translation services.