【SMM Analysis】President Milei's Midterm Election Landslide Injects New Momentum into Unlocking Argentina's Lithium and Copper Resources

Argentine President Javier Milei's landslide victory in midterm elections has injected fresh momentum into his strategy to unlock the country's vast lithium, copper, oil, and gas resources. The overwhelming win consolidates Milei's power base, strengthens ties with Washington, and lays a political foundation for attracting mining investment.

Political Victory Transforms into Investment Opportunities
Milei's far-right coalition achieved a decisive victory in the midterm elections, ending two years of political turmoil marked by radical fiscal austerity measures. This outcome will provide crucial political stability for Argentina's energy and mineral development. The $20 billion aid package announced by U.S. President Donald Trump during the campaign further underscores Washington's strategic bet on Milei's reform agenda and Argentina's mineral potential.

Resource Potential and Infrastructure Bottlenecks
Despite Argentina's globally significant lithium, copper, and shale resources, inadequate infrastructure remains a major obstacle. The government is revitalizing the Belgrano Cargas freight network and allowing mining companies to operate their own trains, aiming to improve logistics connecting northern mining provinces with ports. Simultaneously, the Regime for Large Investments (RIGI) offers tax incentives and legal guarantees to provide multinational companies with a stable regulatory environment.

Strategic Moves by U.S. Capital
Washington's $20 billion commitment through the Exchange Stabilization Fund is seen as a strategic wager on Milei's reform path. CSIS expert Ryan Berg noted, "If Argentina succeeds, it could become a model for deeper U.S. cooperation across Latin America." Early moves by international capital include Rio Tinto's $6.7 billion acquisition of Arcadium and the $4.1 billion joint development of the Filo copper project by BHP and Lundin Mining.

Transformation Challenges Remain
Although the political situation has stabilized, exchange rate volatility could still disrupt financing conditions. The coalition's 14-percentage-point defeat in Buenos Aires province also exposed vulnerabilities in its political foundation. Experts emphasize that sustained institutional building, reliable infrastructure investment, and a solid U.S.-Argentina alliance are crucial to converting geological resources into economic gains.

With a strengthened political mandate and unprecedented American support, Milei now faces his biggest challenge yet: translating political advantage into lasting economic transformation.