A lithium mine on the Salinas Grandes salt flats in Argentina.

Flaws in last year’s groundbreaking Inflation Reduction Act, designed to speed the U.S. energy transition, could end up slowing the adoption of electric vehicles. The IRA’s tax incentives for EVs exclude major potential suppliers of critical minerals, including Argentina, where the lithium sector is growing explosively.

Gabriel Boric, the newly elected president of Chile, has pledged to address the country's economic and political problems. He has also promised to work with Argentina to develop the lithium triangle, a region that is rich in lithium reserves. The development of the lithium triangle has the potential to boost the economies of Chile and Argentina, and it could also help to reduce global dependence on foreign oil.

Over the past two decades, Chile has been a place where businesses can operate in a regulatory environment shaped by steady and fair rules, while Argentina’s extensive regulations on prices, taxes and capital controls have made business difficult. However, when it comes to the lithium industry, that narrative has just been flipped.

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