KIEP: "'Trump of South America' Economic Reforms Help Strengthen Position of Our Companies"

President Milei of Argentina's Reform and Lithium Industry Report

There is an analysis that the radical economic reforms of Argentine President Javier Milei, known as the "Trump of South America," will strengthen the supply chain position of our companies.

On the 6th, the Korea Institute for International Economic Policy (KIEP) stated in its report titled "Contents of Argentina's Economic Reform and Implications for the Lithium Industry" that "Although Argentina may experience social turmoil in the short term during the reform process, the deregulation of the overall economy brought by the reforms will improve the lithium investment environment in the mid to long term."

President Milei, who took office in December last year, believes that excessive intervention by previous governments caused economic difficulties and is vigorously promoting market-centered reforms that minimize the role of the government.

The main contents of the economic reform include ▲abolition of government control over prices and supply ▲privatization ▲adjustment of export taxes ▲removal of industrial regulations and privileges ▲relaxation of mining regulations ▲customs clearance easing ▲relaxation of environmental regulations ▲strengthening of government authority.

Although the reform plan did not directly address lithium, measures applied across industries such as customs clearance easing and "Incentives for Large-scale Investment (RIGI)" are expected by KIEP to create a favorable environment for lithium investment companies.

Park Misook, a senior researcher at KIEP, advised, "There is uncertainty about the extent to which deregulation and relaxation will be completed, but the new government's reforms are proceeding in a direction that improves the lithium investment environment, so the environment is changing favorably for the advancement of our companies. Although the federal government faces difficulties in reforms due to the opposition-controlled National Congress, lithium development and investment are under the jurisdiction of provincial governments, not the federal government. Therefore, companies interested in lithium development should strive to strengthen relations with provincial governments."

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