US to fund $7 billion of Argentina mineral, energy projects, document shows

The US Export-Import Bank intends to provide up to $7 billion in financing for critical minerals and energy initiatives in Argentina, according to a document obtained by Reuters. This move is part of a strategy to strengthen economic ties between the United States and Argentina, as outlined during a UN General Assembly event in New York on Wednesday. The funding announcement aligns with the US goal of increasing access to energy resources and critical minerals in the Western Hemisphere.

The collaboration follows an uptick in relations between the two nations under Argentine President Javier Milei, who is a strong supporter of former US President Donald Trump. Milei's administration has embraced market-oriented reforms and signed a trade and investment agreement in February, which includes cooperation on critical minerals. Despite Argentina's Congress yet to ratify the bilateral deal, the government remains committed to the partnership.

Argentina is rich in mineral resources, including lithium, shale oil, and other commodities. The US assistance will enable local companies to secure loans for purchasing equipment from American manufacturers over the next two years. Notable US companies operating in Argentina include Rio Tinto, which extracts lithium for battery manufacturing, BHP, which is developing a copper project, and Chevron, which operates a substantial shale oil and gas venture.

Argentina, Chile, and Bolivia collectively form the "lithium triangle," a region that boasts the world's largest reserves of the essential mineral for electronics, electric vehicles, and other cutting-edge technologies. Major corporations already active in Argentina comprise Rio Tinto, BHP, and Chevron. Milei's government, set to face a presidential election in 2027, has prioritized an incentive regime called RIGI as a key strategy to attract foreign investment into strategic areas, including energy, mining, and infrastructure.

Recently, Italy's Eni and Argentina's state-owned YPF submitted a joint application under RIGI for a $51 billion liquefied natural gas project. Luis Lucero, Argentina's mining minister, recently informed Reuters that the country could export 580,000 metric tons of lithium and 1,641,000 metric tons of copper per year by 2036, which would be five times greater than the levels witnessed in 2025.