The Chinese company, CNGR Advanced Material Co., a manufacturer of battery components and supplier to Tesla Inc., plans to expand its investment in lithium projects in Argentina. According to information revealed by Mining, senior CNGR executives recently visited three brine deposits – including the Jama project in Jujuy and the Rincón project in Salta – in order to acquire more stakes and build their supply chain outside of Asia.
This strategic move by CNGR comes amid growing pressure from the United States and its allies to reduce their dependence on China for battery metals. Meanwhile, the Asian firm took significant steps in this sector, with its recent partnership with African investment fund Al Mada to build an industrial base in Morocco and the purchase of a 90% stake in the Olaroz Lithium project in Argentina for 63 million dollars in April.
Despite the recent more than 80% drop in lithium prices from their peak in late 2022, CNGR sees opportunities in the Argentine market. The drop in prices created a favorable environment for acquisitions, although it caused difficulties among producers, with projects stalled and deals canceled.
However, analysts suggest that these low prices may be a window of opportunity for companies with investment capacity. The structure of CNGR’s investment in the new projects in Argentina will likely be similar to its acquisition in April, although the company chose not to comment specifically on the matter.
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Source: MINING
