Milei approves RIGI incentives for lithium mine expansion with China ties

Argentine President Javier Milei’s government approved a series of incentives on Thursday for the expansion of a lithium mine half-owned by a Chinese firm, a rare step for the libertarian who has prioritised ties to the Trump administration. 

Milei’s government cleared a joint venture led by China’s Ganfeng Lithium Group to invest US$1.24 billion in an expansion of its mine in the province of Jujuy along with partners Lithium Argentina AG, which has US-listed shares, and state-owned JEMSE. 

Economy Minister Luis Caputo posted about the investment on X, but made no reference to the companies involved. The joint venture will receive legal guarantees and tax breaks as part of Milei’s sweeping programme meant to attract large investments, known as RIGI. 

Ganfeng is the largest shareholder of the project, owning 47 percent of the mine. It’s unusual progress for a Chinese firm in Argentina as Milei had blocked its state-run companies from other projects in a widely-perceived nod to his ties with President Donald Trump, who gave Milei a US$20-billion financial lifeline last year.   

The Argentine government also approved PSJ Cobre Mendocino, previously known as San Jorge, into the RIGI regime. It would be the first large metal mine in the winemaking province of Mendoza and cost about US$891 million. Caputo added that the two projects combined would create 8,000 jobs directly and indirectly.  

Milei’s administration is attempting to bullet proof investments for companies that had largely shunned Argentina after decades of state intervention. Beyond energy and infrastructure, he wants to position Argentina as a major supplier of minerals critical to the global shift toward clean energy, electrification and advanced technologies.

The approvals add to a pipeline of mining and energy projects seeking entry into RIGI, which offers legal stability for up to three decades, among a series of other financial incentives. Milei is also turning to mining to help reverse Argentina’s chronic shortage of hard currency, though some investors remain cautious given the country’s history of capital controls and policy swings.

Caputo said Argentina has approved 16 projects through RIGI that altogether have pledged almost US$30 billion of investments, with another 20 proposals under evaluation.