The Argentine mining sector is a pioneer in the tokenization of lithium touching Cardano

Cardano’s blockchain technology will revolutionize the Argentinian 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 slated for launch in the first quarter of 2025.

Mechanics of tokenization

According to local reports, the 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 handling or physically 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, mostly 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 staggering $1.3 trillion in the next three years, driven by growing global demand.

Although the country’s mineral export is expected to exceed $5.5 billion by 2025, the sector still faces challenges related to supply chain responsibility. To do this, the tokenization project will facilitate greater traceability and authenticity of material, helping to reduce the risk of fraud and ensuring that 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 environmentally friendly practices.

Opportunities for Argentina

Tokenizing real-world assets like minerals could become a multi-billion dollar endeavor by the end of the decade. A recent report by the Boston Consulting Group (BCG) suggested that these 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, saying:

“Blockchain’s distributed ledger allows stakeholders to trace the provenance of lithium, ensuring that it is sourced ethically and sustainably. 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 local and international communities. The initiative is an opportunity for economic inclusion, job creation and fair distribution of income for the country’s mining sector. Rutigliano believes the company will allow profits to flow to producers and local communities by reducing reliance on middlemen.

He further said that the introduction of blockchain-based platforms will create 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.

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