London, UK – On February 4, Argentina and the United States signed a Critical Minerals Agreement announced by Argentine Foreign Minister Pablo Quirno in X.
The primary tool for securing supplies for the mining and processing of critical minerals is said to be worth US$130 billion and is one of the most important bilateral economic transactions between the two countries.
Through this deal, the United States secures priority access to critical Argentine minerals and expands the supply chain for lithium and other strategic resources. Argentina has strengthened its alliance with the United States and secured better access to markets, hoping to boost exports and economic growth.
“Today Argentina sent a clear signal to the world: we are a reliable partner, open to trade and committed to clear rules, predictability and strategic cooperation,” Quirno said in the announcement.
The main goal of the agreement is to ensure America’s independence from China’s monopoly on minerals critical to its defense system, but for Argentina it could be a catalyst for economic change and growth. The United States also issued a $20 billion line of credit to Argentina to make it a stable partner.
Main strategic direction of the agreement
Beyond the core strategic goals of strengthening America’s mineral independence and promoting Argentina’s mining and industrial development, the agreement also highlights deeper alignment of mutual economic and strategic interests.
At first glance, mineral independence in the United States appears to be a key focus, but some observers highlight a parallel desire to reduce Argentina’s dependence on Chinese markets.
“The government wants to send a strong signal to distance itself from China and at the same time show its strategic support for Trump,” Diana Tussie, director of international relations at the Latin American Department of Social Sciences, told Argentina Reports.
She described the deal as a concession to the United States rather than a negotiated agreement, noting that there had been no consultations with companies involved in Argentina’s mining sector.
But the deal could open up possibilities for the country’s mining industry. As part of the broader agreement, the United States guaranteed to purchase lithium at a minimum price regardless of changes in global markets. By ensuring that Argentine miners receive a higher “floor” price for their minerals, the industry is protected from potential Chinese market manipulation.
Géraldine Smeets, Vice President of EuroCámaras Argentina and Director of the European Business Organization Worldwide Network (EBOWWN), explained that the agreement is a step towards strengthening Argentina’s mining investment environment.
“Fast-tracking eligible projects and informing more predictable regulatory practices under RIGI (a government program providing incentives for major projects in the mining, energy and technology sectors) is beneficial for the development of Argentina’s mining sector,” Smeets told Argentina Reports.
But despite the deal’s positive outlook for miners, some experts warn of its long-term implications.
“The continuation of the alliance while interests converge depends on the duration of the two governments, not their intentions,” said Andrés Malamud, a political scientist who specializes in Latin American politics and international relations at the University of Lisbon’s Institute for Social Sciences.
Long-Term Risks to the Argentine Economy
Despite the Argentine government’s enthusiasm for the agreement, some experts question its impact on Argentina’s industrial independence and economic self-determination. While reducing dependence on China and attracting international capital, the minerals framework also introduces new regulations and restrictions.
But according to Smeets, positioning Argentina as a key U.S. strategic partner in key minerals creates significant opportunities.
“In terms of opportunities, closer integration with the U.S.-led supply chain can strengthen Argentina’s role as a trusted supplier of critical minerals amid global diversification, attract investment, improve project financing possibilities, and support infrastructure development,” the business leader said.
She added that the key for Argentina is implementation. This means that rather than narrowing our engagement to a single partner, we ensure that our partnerships raise overall standards and improve the operating environment for all investors.
More than a mining agreement, this framework represents a geopolitical realignment that will be determined by whether Argentina’s economic interests are translated into sustainable development rather than deeper resource dependence.
Long-term success will ultimately be measured not by the investment numbers promised, but by whether the partnership strengthens domestic industry, regulatory stability, and Argentina’s position within diverse global supply chains.
Featured image caption: U.S. Trade Representative Jamieson Greer and Argentine Foreign Minister Pablo Quirno announce the signed mineral agreement.
Featured image credit: @pabloquirno via X.
