34 than 20% in 2019 alone. As a result, lithium has acquired a less flattering title of “white dust” by some companies after they overinvested in its large-scale production and processing. Morgan Stanley projects that lithium prices might fall another 30% by the end of 2025 (Sifon-arevalo, 2019). The supply-demand imbalance has led to lithium not living up to its initial highly optimistic expectations, as supply is outpacing current demands. The supply of lithium has grown much more rapidly than the demand for electric vehicles and other technologies that rely on lithium batteries. Lithium also is used for medicinal and other everyday purposes, but the demand for such uses is stagnant and not projected to grow either. According to Marcel Goldenberg, manager for metals and derivatives at S&P Global Platts, “lithium supply is growing far quicker than lithium demand, and this can be said for all battery materials as the EV (Electric Vehicle) pick up rate is not expected to really start increasing until the early to mid-2020’s” (Sifon-arevalo, 2019). This disparity in supply-demand balance possibly could be compensated over the coming years as governments and private companies across the world take more involved action toward sustainable transportation with electric cars, buses, and trains. Lithium could regain its optimistic price and the title of “white gold” with such developments; however, other not so optimistic scenarios also exist where these high expectations never really materialize. For instance, there is a possibility that the greater part of the world could further defer or never fully realize the transition to renewable energy. Moreover, alternatives to lithium-ion batteries, as discussed previously, might prove a better choice for batteries in coming years, which would greatly degrade the value of lithium and might even render them obsolete. The economic analysis demonstrates that lithium mining at its current state has multiple downsides. Argentina could develop an overdependance on lithium for their economy, which could lead the country toward the resource curse. The possibility of dependance also could be harmful because lithium might not reach its projected stardom in the greener global future. These factors indicate that lithium mining might not be as lucrative for Argentina as hoped. Consequently, Argentina should take certain actions to help prevent or mitigate these effects. It should focus on diversifying the economy early, moving beyond just mining and exporting lithium and into establishing their own lithium-ion battery production plants and eventually consumer products that use these batteries. Such diversification would ensure the Argentine economy does not become overdependent on the mines alone and also create far more employment opportunities than only those the mines can create. Finally, Argentina should work on education to develop skilled personnel to work in the lithium extraction and battery production facilities. Conclusion and Recommendations Argentinians havemuch to look forward to with respect to lithiummining and its economic prospects, if global prices and demand skyrocket rapidly as estimated. There are, however, sizable socioeconomic and environmental hurdles that need to be addressed before any real progress can be made. Argentina still has outdated mining laws that create unnecessary barriers to entry for local and international investors. Argentina needs to be wary of possible harm to local ecologies and indigenous communities. There also are economic pitfalls that arise with lithium mining projects that pose a significant threat to long-term economic viability of lithium mining. Even though the future looks promising, it will be a tough balancing act for the state to consider the needs of all stakeholders while ensuring the best outcome for everyone. To achieve an appropriate balance, Argentina should pursue the following recommendations: • Mining laws should be reworked and standardized across provinces to make them fairer and easier to navigate for all stakeholders. • Mining activities should be conducted in a contained and controlled setting with regular assessment for possible harm to local inhabitants. • Indigenous communities living around lithium mines should be compensated fairly and prioritized for employment opportunities in lithium mines. • Economic diversification of the economy
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