Argentina’s state energy firm YPF said on Monday it will partner with Israeli company XtraLit to jointly develop direct lithium extraction (DLE) projects in Argentina, as the country looks to strengthen its position in the global lithium market.
The collaboration will be carried out through YPF Tecnología S.A., a subsidiary of YPF, and aims to deploy XtraLit’s environmentally friendly DLE technology, which uses an ion-exchange process to extract lithium from both high- and low-concentration brine sources. The technology has already been tested in the Middle East and North America.
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“Partnering with XtraLit enables us to advance sustainable technologies that align with new global standards and enhance Argentina’s role in the lithium segment,” said Eduardo Vallejo, general manager of YPF Tecnología.
YPF added that the partnership is expected to draw foreign investment into the country’s lithium sector, which has become increasingly strategic due to the mineral’s key role in batteries used for electric vehicles, portable electronics, and renewable energy storage systems.
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Lithium prices have declined over the past two years due to oversupply but are forecast to stabilize in 2025 as supply tightens from mine closures and demand from China’s electric vehicle sector continues to rise.