AGP Executive Report

Agriculture: Argentina’s 2026–27 soybean crop is forecast at 52.5 million tonnes, up 4% year on year, as El Niño boosts yield prospects and growers shift some acreage from corn. Corn planting is also running ahead of average, with 30% of the crop planted. Utilities: Buenos Aires water company AySA is set to return to private hands in a US$340 million deal, ending two decades of state management. Energy and Mining: Argentina’s energy potential is drawing attention, while lithium and copper projects advance, including new agreements at Antofalla and a gold-copper-silver project in San Juan. Consumer Markets: Chinese car brands are gaining ground with Argentine buyers, while chicken has overtaken beef as the country’s most-consumed meat.

Lithium: Lake Resources has secured environmental approval for its Kachi project in Catamarca, clearing the way for engineering work; financing remains the next major hurdle. Autos: Chinese brands are gaining ground in Argentina, reaching 10% of car and light commercial vehicle sales in August, up from about 2% in late 2025. BYD is now the country’s ninth-best-selling brand. Agriculture: El Niño has set a Pacific temperature record, raising the risk of disruptive weather for farming. Argentina’s farm belt has also been hit by severe storms and hail, with flooding in Rosario. Investment: Posco has completed a second upstream lithium plant in Argentina, while Saipem has been selected for an expansion project at fertilizer maker Profertil. Water services: State utility AySA is set to return to private hands in a reported US$340 million deal, ending two decades of state management.

Air Cargo: Emirates added seven weekly freighter flights across South America, including three to Buenos Aires; Argentina’s export volumes rose 57% year on year in the first half of 2026–27. Energy & Data: Argentina’s energy ambitions and growing data-centre market are sharpening focus on power supply and infrastructure. Utilities: AySA is set to return to private ownership in a US$340 million deal, ending two decades of state management. Industry & Mining: Saipem was selected for fertilizer producer Profertil’s expansion, while POSCO completed a second upstream lithium plant and CleanTech Lithium secured agreements for Antofalla properties.

Energy: Argentina’s oil-and-gas trade surplus hit $7.8 billion in the first eight months of 2026, surpassing the full-year 2025 total. Vaca Muerta is driving record exports, though analysts say it may not be enough to make Argentina a global energy heavyweight. Digital Infrastructure: Milei is pitching Argentina as a data-centre hub, but announced projects still outnumber facilities under construction or already operating. Utilities: AySA is set to return to private hands in a reported US$340 million deal, ending two decades of state management. Mining and Industry: POSCO has completed its second lithium plant in Argentina, while Saipem was selected for an expansion project at fertilizer producer Profertil. Food Market: Chicken has overtaken beef as Argentina’s most-consumed meat, marking a shift in domestic demand.

Digital Infrastructure: Milei is courting data-centre investors with land, energy and regulatory incentives, but major projects remain at the announcement stage as AI drives demand for power-hungry facilities. Water & Utilities: Buenos Aires water company AySA is returning to private hands in a reported US$340 million deal, ending two decades of state management. Mining & Lithium: POSCO has completed its second upstream lithium plant in Argentina, deepening investment in the country’s battery supply chain. Energy & Industry: Saipem was selected for an expansion project at fertilizer maker Profertil, while Eni is targeting a year-end investment decision on its Argentina LNG development. Agriculture & Food: Chicken has overtaken beef as Argentina’s most-consumed meat, a notable shift for the country’s food industry; rising fertilizer costs and grain-market volatility could add pressure on producers.

Fertilizer Investment: Saipem has been selected for Profertil’s expansion project, a fresh boost for Argentina’s fertilizer industry. Digital Finance: Coinbase and Gennius plan to make Argentina the first market in a Latin American bank partnership offering stablecoin payments and services. Water Utility: AySA is set to return to private ownership in a US$340 million deal, ending two decades of state management. Lithium: POSCO has completed the upstream stage of its second Argentine lithium plant, while CleanTech Lithium secured agreements for properties at Antofalla. Agriculture: Hail and severe storms hit the farm belt and flooded Rosario, adding pressure on producers. Land Policy: Protests have challenged a Supreme Court ruling that opens the way for foreign buyers to acquire land without limits.

Energy & Industry: Saipem was selected for Profertil’s expansion project, while Golar agreed to acquire a carrier for conversion into a fourth floating LNG vessel, adding capacity to its Argentina development. Trade Policy: Argentina joined a U.S.-led initiative with 14 other economies to address excess industrial capacity in sectors including EVs, batteries and semiconductors. Digital Services: Starlink is preparing a community Wi-Fi program that lists Argentina among nine potential markets, offering flexible passes through local host sites. Water Services: Buenos Aires’ AySA water utility is set to return to private hands in a reported US$340 million deal. Mining: POSCO completed its second upstream lithium plant in Argentina, adding momentum to the country’s resource sector. Agriculture: Severe storms and hail hit the farm belt and flooded Rosario, raising concerns for producers and transport links. Economic Outlook: Reports point to sluggish August activity and a possible technical recession, while retail sales were down 2.1% cumulatively.

Water Privatization: A group of Argentine, Brazilian and Dutch firms agreed to buy 90% of AySA for $340 million, returning Buenos Aires’ water utility to private hands after 20 years of state management. Mining: Pioneer Minerals secured an option to acquire the San Francisco gold-copper-silver project in San Juan, where historical drilling identified broad mineralized zones. Growth Outlook: The World Bank projects Argentina’s economy will expand for a third consecutive year in 2027, a first in nearly two decades. Agriculture: A study of 27 Argentine beef feedlots found antimicrobial residues in every site, prompting calls for environmental monitoring. Lithium: POSCO completed its second upstream lithium plant in Argentina, adding capacity to the country’s growing supply chain. Trade: Argentina joined a US-led pact with 14 partners to address excess industrial capacity in sectors including EVs, batteries, chemicals, semiconductors and solar panels.

Water Privatization: A consortium led by local and Brazilian firms won a $340.2 million bid for 90% of AySA, the state utility serving 14 million people around Buenos Aires. Trade and Industry: Argentina joined a US-led statement with 14 economies to address excess manufacturing capacity in sectors including EVs, batteries and semiconductors; the pact sets no immediate tariffs or sanctions. Economic Outlook: The World Bank projects Argentina will grow for a third straight year through 2027, but August data point to a technical recession, while textile output is down 22% year on year. Agriculture and Exports: Severe storms and hail hit the farm belt and flooded Rosario. Emirates SkyCargo says Argentina export volumes rose 57% year on year after adding freighter flights. Energy and Mining: TotalEnergies plans a $1.5 billion offshore investment, while Glencore’s copper hub gained approval under the RIGI investment regime and POSCO completed the base for its second lithium plant in Argentina.

Trade Policy: Argentina joined the US and 13 other economies in a pledge to tackle excess industrial capacity, with sector-focused work planned for autos, EVs, batteries, semiconductors and solar panels. Economic Outlook: A mild August rebound did little to offset sharp July declines in manufacturing and construction; analysts forecast a 1% third-quarter contraction and cut 2026 growth expectations to 1.5%. Mining: POSCO has advanced its second lithium plant in Argentina, while Glencore’s MARA copper hub moved forward with approval under the RIGI investment regime. Energy: TotalEnergies plans a $1.5 billion offshore Argentina investment, and Eni is targeting a year-end final investment decision for its floating LNG project.

Critical Minerals: POSCO completed upstream work at its second Argentina lithium plant, advancing a planned 50,000-ton lithium hydroxide chain. Glencore’s RIGI approval also moves its copper hub forward. Energy Investment: TotalEnergies plans to invest $1.5 billion in an offshore project, while Eni is targeting a year-end investment decision on an Argentina LNG development. Transport: Flybondi filed for creditor protection after a 57-day flight suspension, adding pressure to the aviation market. Leasing demand is growing in transport and logistics. Industry & Demand: Textile output fell 22% as machinery sat idle, while retail sales declined 2.1% cumulatively. Chinese automakers are gaining traction in Argentina as sales of lower-cost, high-tech EVs rise. Trade: Argentina joined 14 economies in a push to coordinate responses to industrial overproduction and trade practices affecting manufacturing.

Lithium Push: POSCO says it has completed the upstream process for its second brine lithium plant at Hombre Muerto in Argentina, setting up a path to about 50,000 tons/year of lithium hydroxide capacity and feeding a downstream unit under construction in South Korea. Mining & Exploration: NewPeak Metals reports a large-scale gold-zinc-silver-lead system at its Las Opeñas project in San Juan, and plans a minimum 1,000-metre Phase 2 diamond drill program starting mid-October to test a southwest extension toward the Belleza Breccia volcanic centre. Food Safety Trade: South Korea will host import-safeguards training for 32 food safety officials from eight Latin American countries, including Argentina, to support Korean food exports and strengthen inspection and standards. Logistics & Trade Routes: Maritime traffic through Chile’s Strait of Magellan jumped over 70% in August and September as drought restrictions at the Panama Canal pushed some shipping to reroute around South America. Aviation Finance: Flybondi has filed for creditor protection after a reported lapse in flights and months of financial strain. Auto Imports: Chinese auto brands are gaining traction in Argentina as eased import rules since 2025 bring more high-tech, low-cost EV and hybrid options to buyers.

Argentina–U.S. Security: Argentina announced $13.35M in new U.S. funding tied to law-enforcement and narcotics programs, boosting regional security cooperation but raising the bigger question of how much strategic independence Buenos Aires keeps as defense ties deepen. Energy & LNG Infrastructure: Capstone Energy+ secured a 2.6 MW order to power a remote natural gas compression plant in Río Negro, feeding an LNG export facility—another sign distributed generation is becoming critical for Argentina’s energy buildout. Oil & Gas Investment: TotalEnergies laid out an Argentina portfolio near $10B, including up to $1.5B for the offshore Proyecto Alberdi near Tierra del Fuego, alongside Vaca Muerta gas expansion and the San Roque oil block under RIGI. Critical Minerals Trade: The U.S. and Argentina launched the Andes-Atlantic Corridor to boost critical-minerals trade links. Citizenship for Investors: Argentina moved ahead with a “golden passport” style citizenship-by-investment program, aiming to attract wealthy foreign capital. Economy Outlook: The World Bank expects Argentina’s GDP to grow 2.1% in 2026, citing fiscal consolidation, tax reforms, and a more open economy. Falklands/Malvinas Offshore Oil: Argentina’s foreign minister said Buenos Aires will stop the Falklands from exploiting offshore oilfields as part of a sovereignty strategy. Defense Procurement: IWI’s ARAD 5 and ARAD 7 rifles were selected by Argentina’s armed forces in a government-to-government deal. Business & Trade Events: SAGSE unveiled its 2027 LatAm roadmap with Buenos Aires, Panama and Paraguay set to anchor a year-round platform connecting gaming markets.

Argentina–Benin Football Farewell: Lionel Messi’s “last dance” with Argentina kicks off Tuesday at the Monumental Stadium in Buenos Aires, with Benin chosen as the opponent and teammates already starting the send-off with an asado and “cuddles and kisses.” Trade Policy at G20: G20 trade ministers in Milwaukee reached consensus condemning the weaponisation of food, while divisions remain on forced labor, industrial overcapacity and broader trading-rule updates. Energy & LNG Link: Europe is stepping up LNG sourcing from Argentina, with German state firm Sefe agreeing to buy 80% of Argentina’s LNG output from 2027–2035, boosting the fracking boom despite environmental pushback. Argentina Capital Markets & Legal Risk: A U.S. Supreme Court bid by Argentine bondholders over a $30M+ claim was rejected, keeping the Second Circuit’s block in place. Mining & Critical Minerals: The U.S. and Argentina launched an Andes-Atlantic Corridor to boost critical-minerals trade, while Argentina also advances a “golden passport” citizenship-by-investment plan for wealthy foreigners. Retail & Industry Signals: Argentina’s retail sales fell cumulatively 2.1%, and textile output dropped 22% as machinery idle rates point to structural stagnation.

Falklands Energy Tensions: President Milei escalated Argentina’s Malvinas/Falklands push, tying the dispute to the offshore Sea Lion oil project and moving toward arbitration, while the Falkland Islands Assembly weighs possible limits on Argentine visitors after flag-waving incidents. Citizenship-for-Capital: Argentina unveiled a “golden passport” program letting wealthy foreigners apply for citizenship via a $350,000 treasury contribution or an $800,000 government bond purchase, with screening for money-laundering risks. Retail Demand Softness: CAME reported Argentina’s retail sales fell 2.1% cumulatively, with shoppers sticking to essentials and cheaper options while postponing big-ticket spending. Textiles Under Strain: Textile output dropped over 22% year-on-year as machinery sits idle in most plants, signaling structural stagnation rather than a short-term dip. LNG Investment Push: Abu Dhabi’s XRG backed Argentina’s LNG expansion, aiming to feed the country’s first export terminal. Airport Disruption: Ezeiza runway maintenance will cut runway length and affect long-haul flights in late Oct/early Nov.

Citizenship-for-investment push: Argentina unveiled its new “golden passport” plan at Argentina Week in Paris, with applications expected in Q4 2026 and two options: a $350,000 non-refundable treasury contribution or an $800,000 government bond subscription, aimed at drawing foreign capital and talent. Trade friction at G20: G20 trade ministers split over U.S. calls to curb excess industrial capacity and “non-market” policies; only Mexico and Argentina backed a forced-labor-focused statement, while most rejected the broader framework. Energy and LNG pressure: A global LNG crunch is driving higher gas prices, with supply disruptions and delayed deliveries raising costs ahead of a later glut. Agribusiness and climate tech: An INTA study for the Salado Basin says livestock management improvements could cut greenhouse-gas emissions by 15% through better health, grazing, pasture recovery, legumes, and genetic selection. Logistics and trade links: The Falklands Chamber of Commerce defended reopening trade with Chile’s Magallanes region, saying success depends on cargo actually crossing by sea. Urban environment: Buenos Aires’ Río de la Plata coast is seeing renewed public-space recovery, including major cleanup efforts, as pollution and access issues remain a long-running challenge.