The Lithium Triangle spans three South American countries: Chile, Bolivia, and Argentina. The last of these—and the world's fourth-largest producer—has been especially vocal about its lithium plans. But becoming a proper lithium major has proved trickier than expected in one key area: nuclear power.
In August of this year, Argentina's mining ministry declared that the country would seek to more than double lithium export revenues from $4 billion to some $10 billion over the next three years. This, the ministry said, would happen as more lithium projects come online, helping to turn Argentina into the world's largest lithium producer.
Per that same minister, the country was eyeing an annual output of 200,000 tons of lithium carbonate equivalent as soon as next year. This could be achievable under President Javier Milei's libertarian and strongly pro-business government. But there is one specific segment of the lithium industry that needs a somewhat different approach: lithium for nuclear power applications.
Bloomberg recently reported that Argentina was vying not just for the top spot in lithium carbonate production but also for a major role in lithium-6 production—an isotope of the element that is used in a new generation of fusion reactors, and that could fetch a much higher price on international markets than lithium carbonate.
According to the World Nuclear Association, lithium-6 is a key source of tritium—a radioactive isotope of hydrogen used in thermonuclear weapons and what the WNA called "future controlled fusion." Research on fusion is ongoing, but it must create enough demand for that lithium isotope if prices on international markets are, per Bloomberg, "tens of thousands of dollars."
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The problem, according to that report, is that the Milei government has decimated scientific research funding in the area. The funding cuts add to preexisting problems, such as the local currency's devaluation and capital controls, all of which are stifling the work of researchers into lithium-6.
"At the end of it all we're left with just one-tenth of the original funding," one scientist working on the conversion of naturally found lithium into the lithium-6 isotope. According to Bloomberg, the pain is being felt across research facilities.
In the specific case of the project that the scientist quoted above, Fabiana Gennari, works, the aim is to enrich lithium atoms using lasers—an environmentally better way to separate the lithium-6 isotope from the natural metal than mercury, which was used in the past. But these lasers cost a pretty penny, and government pennies are no longer as forthcoming as they used to be.
"We're subjecting our scientists to a very tough test because they have it hard enough with the inherent uncertainty of research work," the head of the government agency that disbursed financing for lithium-6 projects told Bloomberg. "Add to that their exposure to Argentina's macroeconomic and institutional instabilities, and it can leave great ideas stranded," Fernando Peirano added.
Argentina's inflation rate rose by 3.9% on the month in August. The figure was the lowest monthly price rise since early 2022, but the annual inflation rate remains at an unsustainable 200%, according to Reuters, as Milei's government tries to rein in one of the highest inflation rates in the world.
It could be argued that those scientists are working in a very specific field that may or may not eventually yield commercial fusion reactors that could solve the emissions-versus-reliable energy dilemma. As such, it is understandable that it is not a top priority for the government. However, the shrinkage of funding due to inflation highlights the long road that Argentina still has ahead if it is to realize its commodity export ambitions.
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By Irina Slav for Oilprice.com
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