Powering Argentina’s Lithium Future: How CONNEX Leveraged Catamarca’s Bargaining Power
The Challenge
As part of the Lithium Triangle, Argentina is one of the world’s most closely watched lithium jurisdictions. Under the country’s federal system, the provinces control their own natural resources, concessions and permits. For provincial authorities, this creates both an opportunity and a responsibility: they must assess large-scale private investments that are increasingly strategic for the global energy transition, while ensuring that environmental safeguards and long-term public interests are fully protected.
This challenge became particularly evident in Catamarca, home to the Kachi lithium brine project located in the Carachi Pampa salt flat, near the town of El Peñón. When CONNEX support began, the project was already at an advanced exploration stage, with a feasibility study in place. The study outlined a 25-year phase 1 development, targeting annual production of 25,000 tonnes per annum (ktpa) of battery-grade lithium carbonate, with first production expected in 2027.
As the project moved closer to construction, Catamarca’s provincial government was required to review the investor’s Environmental Impact Assessment (EIA) within a set timeframe. The task was complex. Unlike traditional projects, the company proposed Direct Lithium Extraction (DLE) rather than evaporation ponds. Its design involved processing lithium-rich brine and reinjecting the depleted brine underground. This was intended to maintain reservoir pressure and minimise impacts on freshwater and brackish aquifers in a sensitive basin that includes the Carachi Pampa lagoon.
DLE is frequently presented as a more environmentally sustainable option, particularly in water-stressed regions. Yet, it is technically complex to evaluate. For Catamarca, the government’s central challenge was to assemble the specialist expertise to rigorously assess the investor’s plans prior to authorizing the next stage. Recognizing this need, the provincial government turned to CONNEX.
Our Role
CONNEX’s support focused on strengthening the province’s ability to evaluate the EIA and engage confidently on the project’s most technically sensitive aspects.
To this end, CONNEX assembled a multidisciplinary team of experts spanning hydrogeology, geochemistry, geophysics, environmental sciences, engineering and negotiation support. This was essential as the key questions were interconnected: assessing the conceptual and numerical hydrogeological model, testing the robustness of the proposed reinjection strategy, understanding possible interactions with surface water systems and examining risks to environmentally sensitive areas such as the Carachi Pampa lagoon and surrounding wetlands.
The CONNEX support package included three major workstreams. First, the expert team conducted a comprehensive review of project documents submitted by the proponent including hydrogeological, geochemical, geophysical and environmental impact assessment data. Second, the team undertook a field mission to the project site, inspecting selected production and reinjection wells, reviewing drill cores and visiting the lagoon area to compare documentation with on-the-ground conditions. The mission concluded with a technical workshop, where the preliminary conclusions were presented to the provincial government. Third, the team submitted a detailed technical assessment report, enabling the government to better understand the project’s implications.
From an environmental perspective, the report confirmed that the project’s hydrogeological model was technically consistent and well supported by field data but also identified specific areas that require further validation before the operational phase. It included a series of actionable recommendations aimed at reducing uncertainty, closing technical gaps and guiding authorities in the formulation of regulatory requirements prior to any construction phase.
Ing. Olga Teresita Regalado, Catamarca Minister of Mines, Argentina commented on the support received by CONNEX: “We are very grateful for the valuable cooperation provided by CONNEX during the challenge of evaluating the Kachi project. Their commitment, willingness, and contribution were fundamental to carrying out this process successfully.”
Our Impact
In the short term, CONNEX’s support clarified key technical uncertainties in the investor’s submission. These included limits in the reinjection model, insufficient treatment of possible surface-water interactions and areas where further field validation would strengthen confidence before any operational phase.
Over the longer term, the process strengthened the provincial government’s institutional capacity to evaluate high-impact lithium projects using clear technical review criteria. It improved coordination across departments, enhanced the province’s ability to assess the completeness and quality of company-provided information and set a precedent for expecting more robust modelling and validation from project developers. Together, these improvements have contributed to more consistent and credible decision-making, stronger environmental oversight and a more predictable investment environment.
Given the strategic importance of Catamarca’s lithium reserves and sustained global demand, these review criteria will remain essential for evaluating future projects.
