After nearly a year of joint efforts to build solid relationships, the company has received the green light from the communities of Rinconadillas and Quebraleña in the Guayatayoc Lagoon to move forward with lithium exploration. Now, Tecpetrol is proceeding with the necessary permissions to obtain exploration permits from the Provincial Mining Environmental Management Unit (UGAMP for its initials in Spanish).

"What has been achieved so far, and how it was achieved, is something to be proud of. However, a long road still lies ahead," remarks Jorge Dimópulos, Tecpetrol's vice president of Lithium.

“Now that these communities of around 200 families have granted Tecpetrol permission to develop future exploration, the company can access 75% of the project's area,” says Ticiana Caruso, Business Development Sr. Manager at Tecpetrol.

"With these social licenses, we can proceed with the Mining Environmental Impact Study (EIA) and prepare for drilling by the end of the year. We’ll soon be able to present a tentative schedule for the follow-up campaign," she adds.

However, Pablo Martellotta, Community Relations Senior Manager, explains that "the remaining 25% belongs to San Miguel de los Colorados, a community which has always been opposed to lithium projects. So, we still have a lot of work to do to win them over for this project."

The Guayatayoc Lagoon lies in a lithium-rich region of the so-called lithium triangle, comprising Argentina, Bolivia, and Chile. The demand for this material is growing and expected to increase even more, primarily driven by the electric vehicle market, which requires energy-efficient and long-life lithium-ion batteries.

Tecpetrol plans to start its exploration activities—after state permits are granted—by the end of 2024, including drilling up to ten wells to evaluate the site's potential. Previous seismic studies have hinted that the sedimentary basin holding brines with lithium could lie as deep as 2,000 meters—an unusual characteristic for Argentina's salt flats. The company aims to reach that depth in order to more fully assess this potential. However, this will require significant technological upgrades, as typical lithium drilling equipment is only designed to get about 800 meters.

Once the evaluation is complete, Tecpetrol will need additional environmental and social permits to proceed with production. If the results are positive, the next phase would involve drilling 16 wells in 2028 and constructing a plant capable of handling 20,000 tons of lithium carbonate, with operations expected to begin in 2030.

Thirty-three local communities have hindered lithium exploitation in this region for 14 years, opposing mining companies' entry with measures such as roadblocks and legal actions that have even reached the Supreme Court of Argentina and the Inter-American Court of Human Rights (IACHR).

Therefore, companies willing to explore lithium in the area are contacting the local communities to share information about their operations and see how best to foster social development, including high-priority issues such as labor and economic opportunities, support in areas such as education, and improved drinking water supplies.

Tecpetrol began working with the families, offering information and debunking myths about the supposed risks of the lithium business, particularly regarding access to land and water. This approach mirrors the strategy used to garner widespread support for developing the Vaca Muerta shale play in Patagonia, now Argentina's largest source of oil and gas.

"They weave llama and sheep wool on looms. We support them in their activities and build trust with proposals like the documentary we made to promote their crafts and showcase the identity of their village," explained Candelaria Gómez Borús, Tecpetrol Community Relations Lead Analyst.

This program aims to revalue their craftsmanship as a product to be sold in new and various markets and as part of their culture and identity. The company has supported them in organizing a fair in Buenos Aires where they could sell their products to Techint Group employees and produce a documentary highlighting their work and heritage.

"With the fair at the headquarters, they had the opportunity to access other customers in a format they are not accustomed to. This makes it almost natural for the next step to be the joint analysis of implementing an online sales system in this initiative. This in turn facilitates the joint analysis of their business management, allowing us to support them in implementing improvement initiatives as the next steps," added Martellotta.

Tecpetrol has also teamed up with Fundación Leer, an organization specializing in improving reading skills, to help people in the communities progress in this area and thus open up new opportunities and options.

As a result of a consultation process held to better understand the needs of the Quebraleña residents, the company donated a GPS and provided training to help them accurately demarcate their plots and set landmarks to establish community boundaries. Tecpetrol has also donated equipment such as balls and goalposts to the Club Belgrano women's soccer team, located in Rinconadillas, and has supported their trips to play in other locations.

Securing the necessary permits from UGAMP will be Tecpetrol's crucial next step before it can move forward with sustainable lithium exploration in Jujuy. As the company continues to deepen its engagement with local communities, it remains committed to fostering transparent, respectful partnerships that honor the environment and the region's cultural heritage. With these efforts, Tecpetrol is laying the groundwork for responsible and community-focused development as it works toward obtaining the required state approvals to advance in lithium exploration.