Can ARGENTINA lead the RACE for LITHIUM? – VisualPolitik EN

Can ARGENTINA lead the RACE for LITHIUM? – VisualPolitik EN


Argentina is a country famous for three things:
tango, soccer and… economic crises. Although, the later one, that might change
sooner than expected… Yes, dear viewer, we are talking again about
LITHIUM, “white gold”, the new oil, and the stuff that batteries are made of. Lithium
is what powers your smartphone, your laptop and (maybe) your electric car. As we said in this other video, Argentina
is, alongside with Chile and Bolivia, one of the three countries that make up the so-called
LITHIUM TRIANGLE. The area where between 60 and 80% of the world lithium reserves are
concentrated. From these three countries, Argentina is getting
the biggest attention by international investors. Yep, you heard that right, the biggest hedge
funds have their eyes on this country. And this is a big surprise given that Argentina
used to be the bogeyman of finances, the problem child of economics… and now, well, it’s
growing into a rock star. So today’s question is… What happened
to this country which improved their image in such a short time? Can they really become
the leader of this lithium race? And most important of all… Can lithium turn Argentina
into a new Abu Dhabi? Today, we’re going to answer all of these
questions… but, before we get started, let’s take a look at the history. ARGENTINA FIRST In the last few years, Argentina had become
the bogeyman for hedge funds. Under the presidency of CRISTINA FERNANDEZ DE KIRCHNER, Argentina’s
government did whatever they could to scare away any foreign company who might want to
invest in the country. When it comes to the mining and oil industry,
Kirchner made an interesting move. In 2008, she passed a law against the repatriation
of capital. This means that if an Australian mining company made a profit by extracting
oil or minerals on Argentinian soil, the government wouldn’t allow the company to send that
money back to Australia. Kirchner’s goal was to force these foreign companies to keep
the financial benefits of their mining in the country. Nevertheless, as you can imagine, the consequence
of this law was that most of the foreign companies simply stopped doing business in the country.
At the end of the day, why would they, if it was forbidden to enjoy the profits at home? But… well, this was not enough, the real
turning point for Argentina came in the year 2012.
Repsol, the largest oil company in Spain, in the year 1998 merged with the Argentine
YPF. For many years, this brand new company was called REPSOL-YPF. But one day, Cristina
Fernandez de Kirchner, in a very Donald Trump-esq fashion, said ‘Argentina first’… Hashtag,
MAKE ARGENTINA GREAT AGAIN? ‘Companies that stay here, even if their
shareholders are foreigners, are Argentinian companies’ And now you might wonder… Well, what happened
next? Of course, Repsol pursued several lawsuits with the government of Argentina. But this
was not the worst thing. The biggest problem was that after being nationalized, Argentine
YPF reduced their oil production in half. Argentina oil production extends decline as
rig activity slows Yes, yes… I know what you are thinking…
What’s the connection between oil production and being owned by private companies or the
government? In fact, there are several state-owned oil companies that work really well. For example
there is ARAMCO: it is the biggest dinosaur juice producer and, still, it is owned by
the Saudi Government. The problem here is that, both in the oil,
and the mining industry, you need high-end gear. And each company has different technologies
and patents. In other words, when YPF wanted to drill their those oil beds of VACA MUERTA
(BAKA MUERTA), they needed to utilize a complicated technology called FRACKING. And there are
only a few companies in the world that have the machines and the skills to do this kind
of work. This is why it is so common that different
oil companies create joint ventures to exploit an oil bed. When Repsol left Argentina, YPF
lost a technology partner. And this is why people say that Kirchner fought against those
bloody Spanish neoliberals… and ended up partnering the American ones.
Chevron, YPF Sign $1.5 Billion Shale-Oil Deal But… hold on just a second because this
is not the end of the story. The biggest issue here is what happens when you take over a
company from one day to the other. Well, the rest of the businessmen are going to be afraid
of you. And… good luck trying to convince them to invest in your country. Think about it, let’s Imagine you have an
oil or mining company… Would you really dare set up a factory and a lot of facilities
in a place where government can just seize all of it from you, just like that!? I doubt
it. And this, among other factors, is what explains why Argentina today has such a big
crisis. But, now Argentina has a new president called
MAURICIO MACRI (MAU RITHIO MAKRI) and… well… the times, they are a’changing. WHITE GOLD RUSH IN ARGENTINA In December, 2015, Mauricio Macri took his
place in the Pink House (the Pink House is the Argentinian White House). He found a country
in the middle of a bankruptcy. Real inflation was higher than 40%, dollars were sold on
the black market, and there was no company willing to invest in the country. And all
of this, despite being one of the wealthiest countries when it comes to natural resources.
This is why, since the very first moment, Macri has tried to conduct a 180 degree shift
compared to what his predecessor did. “Argentina’s new government scraps mining
taxes” In other words, Macri knows that lithium is
a peerless opportunity to repair the accounting books. Of course, no one expects Argentina
to become the new Dubai overnight. But this white gold is a huge windfall and that money
could cover the financial gaps of Argentina’s budget without raising taxes or cutting costs.
And this explains laws like this one. “Argentina signs mining deal to unify regulations,
attract investment” In other words, from now on, mining multinationals
have an open door to the country. And… unlike what happened with the Kirchner era, these
foreign companies can do whatever they want with their profits. This is happening because
Macri has removed the anti-repatriation law. If this was not enough, this legislation unifies
mining regulations all across the country. This means the rules are the same no matter
where the lithium bed is. Further, the mining companies will not have to pay any special
mining tax anymore. Industry heavyweights Albemarle Corp., Soc. Quimica
y Minera de Chile SA, Eramet SA and Jiangxi Ganfeng Lithium Co. are among groups looking
at expanding or building new lithium operations in Argentina But hold on a second because things are not
quite as great as they look! Of course, lithium is a great opportunity for Argentina. But,
as you know, having natural resources does not mean your country is necessary wealthy.
Many Argentinians fear what they would called “ a new Potosi (pot-o-see).” This means
they fear that the country would become flooded with foreign companies that take the resources
and leave without bringing any money to Argentina. So the question now becomes… What can Argentina
do to avoid such a catastrophe? tHE REAL CHANCE OF ARGENTINA As we said in a previous video, the real business
of lithium is not lithium itself but the added-value products you can manufacture with it. At the
time when we recorded this video, a metric ton of lithium had a market price of $9000.
Nevertheless, if we take that raw material and turn it into mobile phone batteries, we
could get an income of between $1.5 and $5 million. Of course, this is a very rough estimation,
but it does help us understand something important. But… hold on a moment because this is not
as simple as it looks! Most of the lithium battery factories are
in countries like the US, Germany or, of course, China. These three countries have a world-class
network of small companies that provide things to the big manufacturing plants. We are talking about logistics, semiconductors,
and so on. All of these things make the manufacturing process cheaper and more efficient. But not
only that, this network effect is what attracts the best engineers and skilled professionals
to these countries. This is the essential if you want to create a high tech industry
in a country. I mean, look, good luck trying to convince
a woman who lives in San Francisco and makes a 6 figure salary to move to Rosario, Argentina,
and work in a factory. As you can imagine, it’s pretty much impossible. So now you might be wondering… What can
Macri do to industrialize his country? Well, the first thing we have to keep in mind
is this: Silicon Valley was not created in a day. Nevertheless, Argentina has a great
advantage over California… They can make easy money by selling raw lithium. Of course, this money can be used by the government
to boost their earnings, but it is also a good opportunity to invest in universities
that will train those workers that might can start those small companies you need in order
to get the big factories up and running. Further, the Government can even co-finance
brand new businesses. This is actually the formula that helped Israel become a technologic
capital. And so far, it seems that Macri is committed to working this way.
But… wait a minute because there are some dark clouds on the horizon. All these opportunities
Argentina has will disappear if Macri, or whoever follows him, falls into the temptation
of destroying rule of law, and going back to ultra-nationalism which would scare away
foreigners. And… it seems that Cristina Fernandez de Kirchner wants to run for office
again… So now it is your turn. Do you think Argentina
could restore the rule of law and become a wealthy country thanks to lithium? Or are
we going to see a new nationalist backlash and a new economic crisis? You can leave your
answer in the comment section below. And, just before we go today, we’ve got
an important request from you! You might have noticed that we rather like using rock music
in our videos, and we’d love to hear from anyone who has a band and thinks their music
could be a good fit for us! We will of course give credit to any music that we do use in
a video! If you are interested? Please drop us an email
at [email protected] Also, don’t forget to visit RECONSIDER MEDIA
podcast. They provided the vocals in this episode that are not mine. And if you liked
this video, give us a thumbs up and… as always, I see you next time.

100 thoughts on “Can ARGENTINA lead the RACE for LITHIUM? – VisualPolitik EN

  1. As much as people like to talk trash about the Soviet Union' s centralized economic system. As much as I don't completely agree with this system either. The truth is Soviet Union did no collapse because of communism. The Soviet Union collapsed because it tried to implement neo liberal free market approaches to fix the problems within it's state run centralized economy​. During the 1930s, 1940s and 1950s the Soviet Union with it's centralized economic model was outpacing everyone else with the exception of the US to became the second largest economy in the world up until the 1970s when that spot was taken over by Japan. They went from a backwards nation of peasants who couldn't even spell their own names to the second largest economy in the world and a leader in scientific and technological research in 20 years despite suffering 2 massive World wars and having lost tens of millions of people. I very much doubt even the US would have been able to do that. And had it not been for WWII and it's total devastation many analysts claim it would have surpassed the US in the late 1940s to early 1950s.

  2. The only thing neoliberalism brought to our country is poverty and recession. It was during the Perón (a nationalist) administration when Argentina's industry grew the most and the middle class lived better. After many different dictatorships (all backed up by the US and ran by neoliberal economists) that industry was destroyed, the debt was multiplied and the middle class almost disappeared.

  3. How can anyone say that companies would drain the country if they don’t do extra investment in it? Do people forget that those companies are paying taxes? That’s literally why there’s taxes imposed on companies so that they pay their share. What they do with their profits should not be a worry for a country as long as they pay taxes?!

  4. Cristina Fernandez de Kirchner belongs in prison for assassinating Alberto Nisman and colluding with Iran in covering up the AMIA bombing in 1994. 23 years without justice.

  5. FFS, Nationalism has nothing to do with closing of your economy to the world. That is protectionism. Learn the meaning of the word!
    I'm getting sick and tired of the constant bashing of nationalism in every other VisualPolitik EN video.

  6. Argentina should keep pushing its advantage before new technology is developed. As we all know too well scientific progress is advancing rapidly. If you're not in the game you're losing ground. The world stops for no country.

  7. Lithium is still plentiful, a price increase of 200% wouldn't even impact battery prices much and the actual crisis is going to come from cobalt, which is a major component in lithium batteries.

  8. This is what will happen: Macri and the oligarchy will give everything ethier to some multinational o to their s own company. As always, private buisness will only care about their profits and they will fuck argentians ass and finace the country wih debt and a financial bicycle, at some point that bubble will collapse, the country wont be able to pay anymore the debt and, maybe not with the violence of 2001 but something like that, the middle class will wake up and choose a new goverment that will fix the economy until the middle class forgets that it is middle class and not fucking rich and it will vote again for the rigth and the entire thing starts again. It has happened, is happening and will happen until we grow some class and national consciousness or we all die.

  9. Make America Great Again has nothing to do with being bankrupt and using a slogan to expropriate assets from foreign companies. Argentina First is a way for Socialists to steal and dissolve foreign assets to get cash. It works, like Venezuela for a while.

  10. There weren't thousands of thousands technology on earth. Like fruits ecosystem technology that you can cycle 5 to 6 kinds of fruit that made no self fertility on soil plus focus on giant created new River machine for agriculture for food. Only do and only on small footprint of area to get maximum efficiency. After 12 years (first generation ) to getting repaid money then usage to invest to next one. Government and people want too much miracle. Imagine that a mother want their children grow up into super smart in few years. What is a ecodynamic capital law.

  11. Great video. However you failed to address the problem in Argentina properly: the previous presidents destroyed the country’s economy because they were socialist, leftist governments.

  12. A majority of the world's cheaply extractable lithium is in South America. Argentina should exploit this monopoly and allow foreign companies to invest in lithium production, but should also reap the benefits of a monopoly, such as high tariffs. A nuanced approach like this could maximize the benefit for them, rather than being a total hermit or whoring their natural resources.

  13. Who in their right mind in Argentina would vote for that trouble lip b** back in power. She should have some shame running back for power

  14. It costs 4-6 times more to extract lithium in Australia compared to Argentina Chile and Bolivia and still Australia is the worlds largest supplier of lithium regardless the fact that Argentina has many times more lithium and much better quality and wages are many times lower in south America. dosent really matter whos the president right now as an investor would never invest in Argentina as I know how voters think and tomorrow if some crazy nationalist get on top(which they will for sure) they will destroy my investment. dont blame anyone Argentinians, sorry to say it but youre destroying your own future. simply look at wealthy countries and think about how did they become wealthy?

  15. If a leader isn't for their own country first they shouldn't run for office, but that could mean a lot of different things and may play out as completely opposite results. Trump is a business man, therefore he understands the "Art of the Deal"…

  16. It's called football, you know, because you use your feet to play, unlike other games that are called football but rarely use their feet.

  17. Argentina is like someone who drinks poison, gets sick and passes out, then recovers, forgets why that was a bad idea and does it again… and again, and again…

  18. I believe that corrupted country cannot be rich and successful. Only government and their supporters can be very rich, whereas others – have nothing.
    I think Cristina enriched herself and her environment very well. I recognize a regime that is similar to the Russian one. It won't be easy to escape the System that 's been working for years and throw off all the parasites who feeds on poverty of millions citizens.
    I will be very surprised if the new government success to change things dramatically. Corruption is in human genes and minds. New government will swipe for their self , one decent politician (if he is) can't change nothing.

  19. There's plenty of engerieers here in Argentina and all around educated people, but there isn't any culture of starting out new bussiness.

  20. Lithium is not an energy source unless you are into fusion. It is only a part of an electrical energy storage technology. Before WW1 Argentina had a higher standard of living than Canada but lacked a strong tradition of social mobility and admiration for "rags to riches talented entrepreneurs". That made it easy for a long parade of venal demagogue politicians/ thieves and their friends to rip off the country and foreigners alike under the pretense of "helping the poor".

  21. My friend. Try not to appear all the time in such a big close-up of you. Try different angles from the camera 🙂

  22. Im Bolivian, the same thing that happened to Bolivia on being exploited by foreign companies for our Natural gas resources…what Argentinean President Mauricio Macri can do is promise ppl from Europe (who are college educated in business & administration degrees) big houses with swimming pools, cars, and their own towns & communities up to a first world level, as well as other commodities & opportunities, if they relocate to Argentina, and become legal Argentinean citizens, and go on to become the brains of a newly formed Argentinean based lithium company, and the money Lithium bring in these new Argentinean-based lithium company could stay in the country, and go into Argentina's local economy…In South America often the European decendents are the brains & the more native ppl are the muscle..but with time & educational facilities thru money earned, and money put into the economy, all that could change to benefit the native/indigenous population

  23. Hi Simon, will you do an economic analysis on Greece! i would like to have your percpective on the future of Greece and what it should be done. Do you think Greece can produce oil or other materials in the area? what is the geopolitical plans of the powerful countries for Greece?

  24. Could you please list your sources for this video, it would be helpful for an essay I am preparing for my international management class?

  25. now lithium is crashing over fears of a slower than projected up take of electrified vehicle production world wide, the Argies cant catch a break

  26. Not a fan of the music background, it's too intrusive and isn't the reason I watch these videos. That said, I am but one person and others may have a different view. Cheers.

  27. So, a communist is now equated too the most prominent capitalist in the countery? You just can't help yourself Bye

  28. What if Venezuela follows Argentina and let foreign investor extract their crude oil? Situation is quite not similar, however – could it help? Thanks for the answers.

  29. comparing Argentina Socialist Nationalization to Donald Trump's very restrained protectism policy, you are not very smart.

  30. Argentina never misses an opportunity to miss an opportunity. Argentina has been close to a breakout into world prominence at least four times. Each time, they lapse into self-destructive policies and fall into chaos. Somehow, the lesson is never learned. I expect this to happen again.

  31. If history is a guide to the feature, all Latin American countries will be perpetually locked in this cycle of boom and burst. The nationalists take the government, nationalize everything, inflate the government spending and break the country. Then someone with sense comes fixes everything and starts turning around the country and then the people put a nationalist government in place, which inflates the government and scare the people who really produce stuff away and there we go into another burst and boom cycle. I know that very well, I've seen a boom and burst cycle happen and decided my life was too short to wait for people to learn their lessons…

  32. can you say that trump is a mirror of all the American people? can you say that Argentina president is a mirror of all the people if Argentina?

  33. Hola! Mucho gusto, soy Rodrigo Colonio, soy peruano y he visto casi todos los videos de visual politik, hacen un gran trabajo!. Queria manifestarte mi interes y sugerencia en un nuevo video que podrian tener: en Perú encontraron litio, tanto que sobrepasa en 7 las cantidades que tiene Bolivia y Chile juntos, seria interesante si toman.este tema y ver que enfoque o decisiones deberia tomar Perú, inclinandose como lo hara Bolivia o Chile? O tal vez un poco de ambos.

    Gracias de antemano. Saludos!

  34. i just did some research and i found that the biggest deposit of lithium is actually in south australia? https://www.smh.com.au/business/companies/australia-tipped-to-soon-produce-more-than-half-of-the-world-s-lithium-20180427-p4zc5h.html am i wrong ?

  35. Hold on! Hold it! Did you just say Israel is a Technological Powerhouse? Really? I have never bought anything made in Israel! I don't even understand Kosher Salt! I thought Kosher was how it was killed? Imagine killing every grain of salt? One day I will meet a jewish person and ask them about it.

  36. Check situatiation today, 31st Aug 2018… With Mauricio Macri, AKA El gato… Economy is a total dissaster.

  37. I can tell this channel is definitely funded by globalists, the type of nonsense being spewed here is hilarious, especially the host who was ridiculed by the historical communities for pushing false and debunked information

  38. The only correction I can make is that you don't pronounce the "c" letters with a "th" sound in Argentina! Mauricio! Not Maurithio. Entendes? Bien 😜

  39. Argentina is a complicated country and quite intriguing. They always had everything to succeed and failed. Perhaps, the problem here is too much wealth. Different to other countries with limited resources or constantly in conflicts there was never the direct need to manage their wealth well. In addition to this we have a wave of conservatism and populism around the world.

  40. An old Argentinian joke. God made Argentina and he said it's too good. So he made the Argentinian.

    I love the country, but the national atitude runs very deep and it impedes any progress. Sadly I suspect they will keep going from crisis to crisis.

    Also many of the young people are picking up and leaving.

  41. the only way that Argentine can get money from lithium is with a tax upon lithium, trying to develop a technology is being very naive

  42. Knowing Argentina, I'm pretty sure that, if they even manage to profit from Lithium, they'll lose all of it as soon as in the next decade.

  43. It's a pity you still have to childishly compare trump and this crazy woman who sank Argentina. Otherwise the rest of the video is good

  44. I'm not going to hold my breath waiting for Argentina to maintain the rule of law…….give them 10-20 years, maybe.

  45. Argentina has less oil than before because repsol got all the oil out without invest a cent for years in New drilling, research etc etc, respsol was selling from Argentina to themself in Spain oil at half price of the correct price. This is the reality

  46. Ketobbey is twitchPCgaming and sent you an email 🙂 Awesome video it's fun to be watching your channel in reverse order. Love how your current content has grown so much but you started off so strong also.

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