Key Points
- Argentina diversifies its energy mix with fossil fuels and renewables.
- Vaca Muerta boosts oil and gas output to record highs.
- Lithium mining drives Argentina’s role in the global energy transition.
Argentina is emerging as an international energy powerhouse by diversifying its energy mix to include fossil fuels, renewable energy, and critical mineral mining. Known for its oil and gas production, the country is now focusing on expanding its solar and wind energy capabilities.
Argentina strengthens its energy mix with renewables and fossil fuels
Argentina’s oil and gas production has surged in recent years, driven by output from the Vaca Muerta shale formation. Between January 2021 and September 2024, crude production rose by 50%, while natural gas output increased by 27%, nearing the country’s early 2000s production peak.
According to the U.S. Energy Information Administration, Vaca Muerta in Neuquén province contains approximately 308 trillion cubic feet of recoverable shale gas and 16 billion barrels of recoverable shale oil.
Argentina ranks among the top five countries globally for shale resources. In September 2024, the country produced 738,000 barrels per day of crude, the highest monthly output since 2003, and averaged 5 billion cubic feet of natural gas per day.
In August, Rice University’s Baker Institute for Public Policy launched an initiative to explore Argentina’s energy potential. The project aims to bring together policymakers and experts to focus on oil and gas exploration, energy infrastructure, and mining’s role in renewable energy transitions.
The plan includes a 140-kilometer high-voltage line connecting the Puna Transformer Station to mining companies in the northwest, supporting their energy needs with renewable sources.
Mining boom positions Argentina as a global lithium supplier
Argentina’s mining sector is critical for the global supply of lithium, a key component in lithium-ion batteries used in electronics and electric vehicles.
As stated by Oilprice, the country forms part of the lithium triangle, which holds over 75% of the world’s lithium reserves. Despite its importance, mining contributes just 0.7% to Argentina’s GDP, far less than Chile and Peru, where mining accounts for 8–10%. However, exploration spending increased by 77% from $241 million in 2021 to $427 million in 2023, reflecting the sector’s rapid growth to meet rising global demand.
Argentina also shows significant potential for renewable energy development. While fossil fuels currently account for 88% of its energy consumption, the Renewable Energy Law sets a goal for 20% of electricity to come from renewables by 2025. The government also aims to reduce greenhouse gas emissions by 27.7% by 2030.
The southern region of Patagonia offers prime conditions for wind energy, while the northern provinces are ideal for solar power.
These geographical advantages position Argentina to significantly expand its green energy capacity and contribute to global decarbonization efforts.
