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Argentina Energy Mining Sectors

Argentina is the eighth-largest country by land mass and is Latin America’s third-largest economy with a population of about 47 million and a GDP of almost $640 billion. GDP growth for 2025 is projected at 5.5%, thus surpassing the Latin American average, and is driven by private consumption, investment, and key sectors like energy, mining, and agriculture. Argentina boasts significant natural resources, including the world’s fourth-largest shale oil, second-largest shale gas, third-largest lithium, and fourth-largest copper reserves. The country also has exceptional solar and wind potential, particularly in Patagonia. Government reforms, including tax reductions, relaxed capital and trade controls, and regulatory easing, have spurred growth. The Incentive Regime for Large Investments (RIGI) and Decree 749/2024 offer tax breaks, import duty exemptions, and long-term tax stability, attracting $30 billion across 20 projects. Free Trade Zones have drawn $3.2 billion in lithium and $1.5 billion in shale oil and gas investments in Argentina’s Vaca Muerta region. Consequently, in 2024, oil and gas exports rose 24%, and mining exports increased 10%.

Oil & Gas

Argentina’s Vaca Muerta formation in the Neuquén Basin, spanning 8.6 million acres and geologically similar to Texas’ Eagle Ford, has made the country a key player in global energy. Market-friendly policies under President Javier Milei, including the RIGI, have driven foreign investment and drilling, aiming to transform Argentina into a net energy exporter. New infrastructure, like the Perito Moreno gas pipeline (0.7 Bcf/d, expandable to 1.2 Bcf/d by 2028) and the Vaca Muerta Norte and Sur Oil Pipelines, addresses transport bottlenecks, boosting shale oil and gas exports. The Vaca Muerta Sur Oil Pipeline is projected to generate $15 billion in annual export revenue by 2027, potentially reaching $20 billion with expansions. Vaca Muerta wells outperform U.S. shale, yielding approximately 30 barrels of oil per foot in the first year versus 15–23 in the Permian and Eagle Ford. In 2024, the number of fracking wells hit a record 1,500, with shale oil production reaching almost 400,000 b/d (up from 90,000 b/d in 2019) and natural gas at 5.4 Bcf/d, with Vaca Muerta contributing 74%. Crude oil exports grew 33% annually, from 30,000 b/d in 2017 to 128,000 b/d in 2023, with shale oil comprising 70% of 2023 exports. By 2030, Vaca Muerta oil production is expected to surpass 1 million b/d, supported by plans for LNG export facilities and increased crude shipments, particularly to the U.S.

Best Prospects

  • Oilfield services and equipment.
  • Pipeline and infrastructure technology.
  • LNG export facility equipment and technology.
  • Drilling and completion.
  • Renewable energy integration technologies.

Mining

Argentina’s regulatory framework has positioned the marketplace as a preferred investment destination for lithium mining in contrast with neighboring markets. Argentina joined the Extractive Industries Transparency Initiative (EITI) in 2018, which is a global standard for good governance of oil and gas and mineral resources. In 2024, Argentina signed agreements with the U.S. to bolster critical mineral supply chains, joining the U.S.-led Minerals Security Partnership to promote sustainable mining and reduce reliance on China. Mining exports reached $6 billion, up 6% year-on-year, with a $30 billion portfolio of over 100 projects, including 19 in production and seven under construction, poised for a potential five-fold export increase by 2035. Key minerals include gold, silver, and copper, with Argentina ranking as the world’s third-largest lithium exporter (20% of mining exports) and fourth-largest lithium producer, leveraging brine evaporation. Copper exploration is booming, with over $20 billion to be invested in projects like El Pachón, Agua Rica, Josemaría, Los Azules, and Taca Taca by companies like Glencore, BHP, Lundin Mining, and First Quantum. Supported by the RIGI program, Argentina aims to be a top 10 copper producer by 2030, with 75.5 million tons of reserves.

Best Prospects

  • Advanced mining and processing equipment.
  • Ore extraction and processing technologies.
  • Automated and digital mining solutions.
  • Water management technologies.
  • Cleantech integration technologies.

Renewables

Argentina boasts the world’s third-largest wind reserves (exceeding Spain and Denmark) and second-largest solar reserves, with wind potential over 2,000 GW—100 times the current installed capacity. Multi-billion-dollar clean energy investments have reduced greenhouse gas emissions by 30%. The Milei administration’s market reforms, including trade liberalization, support Argentina’s vast renewable energy potential (solar, wind, hydroelectric) to meet its COP26 goal of 30% renewable energy in the national energy matrix by 2030. In 2024, renewables accounted for 16% of power generation, led by wind (70%, 1,442 GWh), followed by solar (13.4%, 254 GWh), small hydroelectric (4.8%, 93 GWh), biomass (4%, 77 GWh), and biogas (2.2%, 43 GWh). The growing clean tech industry, driven by climate commitments, offers significant export opportunities for U.S. companies in various renewable energy sectors.

Best Prospects

  • Wind turbine technology and components.
  • Energy storage and grid integration technologies.
  • Bioenergy technologies (biogas and biomass).
     

Battery Energy Storage Systems (BESS)

Argentina aims to achieve net-zero greenhouse gas emissions by 2050, requiring a major transition to cleaner energy and technologies like Battery Energy Storage Systems (BESS). The country’s carbon footprint comes from agriculture (43%), industry (20%), buildings (7%), transportation (13%), and electricity/heat (17%). To meet the target, Argentina must adopt low-carbon solutions and improve energy efficiency across these sectors. The government supports this through ambitious clean energy goals, policies, incentives, and BESS project initiatives.

Best Prospects

  • Battery Energy Storage Systems (BESS).
  • Lithium-ion battery manufacturing and supply chain.
  • Renewable energy projects (solar, wind).
  • Low-emission hydrogen technologies.
  • Smart grid and energy management systems.

Hydrogen

Argentina is pursuing a strategic hydrogen production plan, targeting 5 million tons annually by 2050 through green (renewables), blue (natural gas), and pink (nuclear) hydrogen. The National Hydrogen Development Strategy requires 30 GW of electrolysis and 55 GW of renewable energy capacity, aiming to double national electricity generation and increase renewable energy output 11-fold. Up to 80% of the hydrogen could be exported, potentially generating $15 billion annually, establishing Argentina as a global hydrogen market leader.

Best Prospects

  • Green hydrogen production technologies (electrolyzers, renewable energy systems).
  • Hydrogen storage and transport solutions.
  • Hydrogen safety and detection technologies.
  • Fuel cell technologies for various applications.
  • Infrastructure development for hydrogen production, storage, and export facilities.

Contact

For additional information, including market analysis, trade events, and U.S. Commercial Service offerings, please contact:

Marcelo Amden
Senior Commercial Specialist, U.S. Commercial Service
Email: Marcelo.Amden@trade.gov