2024 South American Lithium Resources Field Trip - Third Stop: EKEKO S.A.

In recent years, the dramatic fluctuations in lithium prices have made the industry chain experience the "bittersweet" of the market. Although current lithium prices are no longer as glorious as they once were, the development prospects of the new energy industry chain remain bright under the global advocacy of a low-carbon economy, and the importance of lithium resources is becoming increasingly prominent.

As one of the regions with the richest lithium resources globally, South America, especially the "Lithium Triangle" (Bolivia, Argentina, Chile), holds over 55% of the world's proven lithium resources. Therefore, South American lithium resources play a crucial role in the global energy transition.

Against this backdrop, SMM organized the 2024 South American Lithium Resources Field Trip. Led by SMM Customer Manager Siyu Chen, the delegation visited lithium-related enterprises in South America from November 26 to December 7, 2024, toured local lithium mines and material companies, and held discussions with company executives to explore potential opportunities in lithium ore resource development, technical exchanges, and investment cooperation. On the morning of November 29, SMM and the delegation headed to EKEKO S.A. for in-depth exchanges.

Company Introduction

SMM and the delegation arrived at EKEKO S.A., where CEO Rodrigo Nordman warmly welcomed them and provided a detailed introduction to the company's business development.

Ekeko is an Argentine company focused on lithium resource development. The company is dedicated not only to its own project development but also undertakes third-party projects, covering the entire process from initial stages to feasibility, aiming to add value to projects and promote further production of lithium products such as lithium carbonate or lithium hydroxide. The Arizaro Sur project includes the company's mining concessions and three additional applications, covering a total area of 18,840 hectares.

These mineral resources are part of a larger resource portfolio, which includes nine mining concessions and four applications within the Salar de Arizaro area. The project is located in the southern part of the salt lake, adjacent to lithium mine projects developed by several public and private companies, including Lithium Chile and Hanaq, and enjoys geographical advantages near existing infrastructure and freshwater resources.

Technical Exchange

SMM and the delegation had in-depth exchanges on EKEKO S.A.'s core competencies and future development plans.

The Salar de Arizaro project covers the company's mining concessions and three additional applications, totaling 18,840 hectares. These assets are part of a larger project portfolio that includes nine concessions and four applications in the Salar de Arizaro area. Arizaro Sur is located in the southern part of the salt lake, adjacent to lithium mine projects explored by companies such as Lithium Chile and Hanaq. This area is close to existing infrastructure and freshwater resources.

Additionally, both parties discussed the opportunities and challenges of investing in Argentina. On the opportunity side, Argentina has an attractive tax regime, with the government approving a long-term favorable tax policy for investments over $200 million, particularly in the mining sector. Argentina is also open to cooperation with Chinese companies and does not prohibit business transactions based on nationality. However, there are also challenges, such as a shortage of funds locally. Moreover, the construction cost of building a production plant in Argentina is relatively high, approximately $300 million to $400 million, and government permits are required for production.

Group Photo

After visiting the factory, SMM and the delegation took a group photo with EKEKO S.A., enhancing their cooperative friendship. It is believed that there will be deeper exchanges and cooperation in the future!

Through this field trip, SMM and the delegation gained a deeper understanding of EKEKO S.A.'s products, technology, and development, as well as a more profound insight into the market status, development trends, and existing issues of the South American lithium battery industry. They will continue to deepen cooperation with major enterprises to achieve complementary advantages and promote the development of the lithium battery industry.