BUENOS AIRES — Maria Fernanda Avila, chair of the mining committee in Argentina's Congress, described her country's relationship with South Korea as a "long-term alliance" at a press briefing held in Buenos Aires on the 17th. Avila said she hoped the bilateral cooperation that began with POSCO Holdings' (005490.KS) flagship investment in the Hombre Muerto salt flat would expand beyond critical minerals such as lithium into the broader manufacturing industries where Korea holds an edge. A graduate of the law school at the National University of Tucuman and a qualified lawyer, Avila has served as legal adviser to the government of Catamarca province — where POSCO Argentina secured its lithium salt flat — as well as provincial mining minister and director of the national mining secretariat. Though she has not yet visited Korea, she is a friend of the country who has expressed interest in and affection for Korean cosmetics such as Sulwhasoo.
The following is a Q&A with Avila.
Q: How large is Argentina's lithium industry?
A: Argentina exported $6.037 billion worth of minerals last year, of which lithium exports accounted for $905 million, or about 15% of the total. What is notable is the pace of growth. Lithium exports in the first half of this year reached $1.096 billion, up 185% from the same period a year earlier. In just half a year, they exceeded the full-year export figure for 2025. These numbers show that lithium is no longer merely a matter of expectation tied to Argentina's geological potential, but is becoming an increasingly important source of the country's production, exports and foreign-currency earnings.
Q: What are the strengths of Argentine lithium?
A: I would say high-quality resources and an investment environment open to business. Argentina has a political system in which the federal government and provincial governments coexist. The provincial governments, which hold licensing authority, pursue community, environmental and local policies according to their own characteristics. The federal government provides support through programs such as the Incentive Regime for Large Investments (RIGI).
Q: How has POSCO Holdings contributed to relations between Argentina and Korea?
A: The POSCO Argentina project has greatly helped build friendly relations between the two countries. Personally, my first connection with Korea also began through POSCO, and I could feel its respect for and emphasis on provincial governments and local communities, through such things as developing local talent and creating suppliers.
Q: What is Korea's standing in Argentina?
A: Major foreign investors, besides Korea, include Canada, Australia, China, the United States, the United Kingdom, Switzerland, France and Japan. The relationship with Korea is not limited to simple investment. Korea is already a major destination for Argentina's mineral exports. In the first half of this year, Korea imported about $234 million worth, equivalent to about 5% of Argentina's mineral exports. That was up about 196% from the same period a year earlier.
For these reasons, we see Korea as a particularly strategic partner. South Korea is an industrial and technological powerhouse that needs critical minerals for its battery, automobile, steel and technology supply chains, while Argentina needs the capital, technology and markets to develop its resources — so there is clear complementarity.
Q: What does it mean that POSCO Argentina has obtained RIGI approval?
A: It means the company can invest and operate in a stable environment for 30 years without change, even if the government changes.
Q: Are there initiatives to promote foreign investment beyond RIGI?
A: RIGI is a very important instrument, but Argentina's strategy for attracting investment does not end with RIGI. This year we carried out a full overhaul of a mining investment law that was more than 30 years old, aiming to simplify licensing procedures, ease administrative burdens and strengthen the predictability and legal stability of investment.
In addition, a medium-scale investment incentive (RIMI) will take effect this year. It is designed to complement RIGI and to encourage small and medium-scale productive investment, both domestic and foreign, through tools such as accelerated depreciation and value-added tax credit refunds. Large mining projects require an extensive surrounding network of suppliers, technical services, engineering, transport, maintenance and small and medium-sized enterprises.
