France and Argentina Forge New Alliance on Critical Minerals
France and Argentina sign a framework agreement to enhance cooperation in the mining sector, focusing on lithium and critical minerals.
Key Points
- • France and Argentina signed a framework agreement on critical minerals.
- • The agreement aims to enhance bilateral relations in the mining sector.
- • Lithium, for which Argentina holds substantial global reserves, is a key focus.
- • French direct investments in Argentina rose by 43% in 2024, totaling $7.6 billion.
On June 28, 2025, France and Argentina solidified their partnership by signing a framework agreement focused on enhancing cooperation in the mining sector, particularly regarding critical minerals like lithium. This agreement, signed in Buenos Aires by French Minister for Foreign Trade Laurent Saint-Martin and Argentine Secretary of Mines Luis Lucero, is aimed at advancing bilateral relations and investments in the mining industry.
Lithium, a key component in energy transitions and digital technologies, is at the forefront of this agreement, especially as Argentina possesses the third-largest lithium reserves globally. Minister Saint-Martin highlighted that this initiative is crucial for establishing a modern and sustainable mining industry, intended to address the pressing demands for critical minerals amidst the global energy transition efforts.
The memorandum outlines intentions to promote not only cooperation but also significant investment within the mining sector. The growing relationship has already shown promise, with French direct investments in Argentina rising by 43% in 2024, reaching $7.6 billion. This substantial increase makes France the fifth-largest foreign investor in Argentina, with many French companies, including the group Eramet, contributing to this growth by investing $850 million to establish a direct lithium extraction plant in Salta province.
This bilateral agreement is part of a broader strategy by both nations to secure resources essential to sustainable energy and technology advancements. It exemplifies the strengthened ties between France and Argentina, paving the way for future collaborations in critical areas of economic development.