Fast, Clean, and Game-Changing: Argentina’s Lithium Leap

YPF’s tech arm and Israel’s XtraLit partner on faster, greener lithium recovery in bid to strengthen EV supply chains

13 May 2025

Argentina has announced a new partnership aimed at modernising its lithium extraction industry, aligning with global efforts to secure cleaner and more efficient battery supply chains. On May 5, Y-TEC, the technology division of state energy company YPF, entered into a strategic alliance with Israeli firm XtraLit to introduce direct lithium extraction (DLE) in the country’s northern salt flats.

The venture will deploy XtraLit’s proprietary method, which uses specialised materials to extract lithium directly from brine while returning the majority of water back to the environment. The process is designed to reduce the extraction time from months to days and lessen the environmental impact traditionally associated with evaporation ponds.

“This isn’t just a tech upgrade; it’s a national shift,” a Y-TEC executive said, highlighting the potential for the technology to unlock reserves previously deemed uneconomical or ecologically sensitive.

Argentina is part of the “lithium triangle”, along with Chile and Bolivia, which holds more than half of the world’s known lithium reserves. But despite its resource base, the country has lagged behind in scaling production. Analysts say more sustainable and rapid extraction techniques could help Argentina close that gap and appeal to manufacturers seeking traceable and environmentally responsible supply.

Simon Litsyn, chief executive of XtraLit, described the partnership as “our first bold step” and said it could enable Argentina “to lead the next era of responsible lithium”.

The collaboration is seen as a test case for public-private innovation in critical mineral supply chains, with government officials and international investors closely monitoring its progress.

However, DLE technology has yet to be widely adopted at commercial scale. Uncertainties remain around cost, energy requirements, and the readiness of regulatory frameworks. Still, the partners are optimistic that Argentina can position itself as a strategic player in the global electric vehicle market.

If successful, the initiative could mark a turning point for Argentina, transforming it from a passive resource holder into an active supplier of battery-grade lithium for a decarbonising world.