The Argentine mining sector is a pioneer in the tokenization of lithium by turning to Cardano

Cardano’s blockchain technology will revolutionize the Argentine lithium industry through an agreement with three players in the sector: Atómico 3, Zengate and Alto Grande.

The collaboration will introduce the world’s first lithium tokenization project, a disruptive initiative scheduled to launch in the first quarter of 2025.

Tokenization mechanics

According to locals informationThe project will use blockchain technology to convert lithium property rights into digital tokens. This will allow investors to trade fractional shares of the mineral without physically handling or owning it.

The process aims to democratize access to resources, improve liquidity and facilitate international trade through secure and immutable blockchain-based transactions.

Argentina is home to some of the largest lithium deposits in the world, most concentrated in Catamarca, Salta and Jujuy. The metal is not only a cornerstone of electric vehicle (EV) batteries and renewable energy storage, but is also critical in the global transition to cleaner energy.

Some analysts estimate that the electric vehicle industry alone could be worth a mind-boggling $1.3 trillion over the next three years, driven by growing global demand.

While the country’s mineral exports are expected to exceed $5.5 billion by 2025, the sector still faces challenges related to supply chain liability. To address this, the tokenization project will facilitate greater traceability and authenticity of material, helping to reduce the risk of fraud and ensuring ethical and environmental standards are met.

It will also help improve collaboration between the Argentine government and mining companies, ensuring they adhere to transparent and ecologically friendly practices.

Opportunities for Argentina

Tokenization of real-world assets, such as minerals, could become a multi-billion dollar undertaking by the end of the decade. A recent report from the Boston Consulting Group (BCG) suggested that such assets could account for at least 1% of the global mutual fund and ETF market by 2030, translating into a $600 billion business.

Speaking exclusively to CryptoPotato, Atómico 3 founder Pablo Rutigliano highlighted the economic and environmental importance of the tokenization initiative and said:

“Blockchain’s distributed ledger allows stakeholders to track the provenance of lithium, ensuring that its origin is ethical and sustainable. For example, stakeholders can confirm compliance with local labor laws, environmental standards, and water use metrics, which are crucial concerns in Argentina’s lithium-rich regions.”

According to him, the project will benefit both the local and international community. The initiative is an opportunity for economic inclusion, job creation and fair distribution of income from the country’s mining sector. Rutigliano believes the company will allow profits to reach local producers and communities by reducing dependence on middlemen.

Additionally, he said the introduction of blockchain-based platforms will create a demand for tech-savvy roles and training opportunities.

For investors, a tokenized version of the metal improves market accessibility by enabling fractional ownership and 24/7 trading, increasing liquidity and reducing transaction costs.