BUENOS AIRES (miningweekly.com) – Lithium prospects in Argentina are drawing increasing levels of investment, as Canadian exploration firms, in particular, find deep-pocketed Asian partners to help advance their projects.

Last week, a group of South Korean companies secured an option to buy a 30% stake in Canadian Lithium One's brine project in north-west Argentina.

The investment, by Korean GS Caltez, LG International and State-owned Korea Resources, is the first by South Korean firms participating in lithium exploration abroad.

The Koreans can earn the 30% in the Sal de Vida project by funding and delivering a definitive feasibility study and funding other work totalling up to $15-million.

If successful, the mine could produce 12 000 t/y of lithium carbonate, and the new partners plan to negotiate an offtake agreement under which the Koreans could buy up to 50% of the production.

Other companies exploring or preparing for development of lithium projects in Argentina include: Latin American Minerals, Lithium Americas Ekeko, Li3 Energy, Orcobre, South American Salars, Minera Exar, Compañía Minera Solitario Argentina, Latin American Salars, Rodenia and Bolloré.

Lithium is used in rechargeable batteries including for hybrid vehicles and Argentina currently sells the metal to the US, UK, Germany, China, Russia, Japan and Holland.

The country expects to see $500-million in investments to develop lithium deposits over the next two years, local newspaper La Nación reported recently.