By Swann Collins, investor, writer and consultant in international affairs – Eurasia Business News. August 6, 2026. Article n°3047
Argentina and South Korea have agreed to deepen cooperation on critical minerals, placing the entire lithium value chain at the center of a broader economic partnership announced during President Lee Jae Myung’s visit to Buenos Aires.
Under a memorandum of understanding, the two countries will promote investment and joint projects covering lithium exploration, extraction, processing and refinement. They will also exchange information on mineral policies and investment frameworks, creating a more structured channel for cooperation between government agencies and private companies.
The agreement comes as Argentina seeks to attract foreign capital into export-oriented industries and as South Korea works to secure reliable supplies of minerals needed for batteries, electric vehicles, semiconductors and energy-storage systems. Argentina holds substantial lithium resources, particularly in the northwestern provinces of Salta, Jujuy and Catamarca, making it an increasingly important partner for Asian manufacturers.
An immediate signal of the partnership’s commercial potential came when Argentina approved an expansion of South Korean company POSCO’s lithium project in Salta. The US$547 million investment is expected to support annual production of 23,000 tons of lithium carbonate and generate more than US$300 million in yearly exports, according to Argentina’s Economy Ministry. Further information on POSCO’s operations is available through the company’s official project page.
The governments also finalized negotiations on a double-taxation avoidance agreement. Once signed and ratified, the treaty should reduce tax uncertainty for Korean companies operating in Argentina and make investment conditions more predictable.
Cooperation may eventually extend beyond lithium to copper, crude oil, liquefied natural gas, nuclear energy and discussions over a potential Korea-Mercosur trade framework.
For Argentina, the initiative strengthens its strategy of converting mineral resources into hard-currency earnings. For South Korea, it offers a pathway toward more diversified supply chains and deeper access to one of the world’s most significant lithium regions.
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© Copyright 2026 – Eurasia Business News. Article no. 3047
Eurasia Business News 