Argentina Picks Speed Over Scale in Lithium Shakeup

Government backs Galan over Ganfeng, shifting focus to early investment and project execution

30 Jul 2025

In July Argentina gave a clear signal to lithium investors: move fast or miss out. Galan Lithium’s Hombre Muerto West project was admitted into the government’s flagship RIGI incentive scheme. A rival proposal from Ganfeng Lithium, one of China’s largest producers, was rejected.

The decision marks a shift in Argentina’s lithium strategy. RIGI, a set of tax and export incentives, was once seen as welcoming to any major player. Now, eligibility hinges on early-stage investment and rapid development. Ganfeng’s plan, reportedly lacking sufficient near-term spending, fell short. Galan’s aggressive timeline and upfront capital commitments tipped the scales.

“Argentina is choosing credibility over speculation,” said a Buenos Aires-based consultant. “It wants partners who break ground, not just break news.” The country is the world’s fourth-largest lithium producer but often plays second fiddle to neighbours Chile and Bolivia in policy clarity or output scale.

With global demand for electric vehicles and grid storage soaring, buyers are seeking predictable and timely supply. That has reshaped the calculus in Argentina. Officials now want projects that generate exports and jobs quickly. Galan joins five other ventures under RIGI, whose perks include tax relief, regulatory certainty and streamlined export terms.

The consequences of this new posture are likely to extend beyond Galan and Ganfeng. Investors eyeing Argentina’s vast lithium triangle may now face higher hurdles. Capital must arrive early. Progress must be visible. For the government, the gamble is that tighter criteria will elevate the country’s reputation for reliability.

As the energy transition gathers pace, Argentina is moving from openness to selectivity. The lithium race is no longer just about who shows up, it is about who gets to work.