Argentina has secured a US$400 million credit line from the French Development Agency (AFD) and the European Investment Bank (EIB) to support critical upgrades to its electrical grid, reinforcing the country's capacity to supply power to growing mining and industrial sectors.

The funding will be used to build transformer stations and high-voltage transmission lines in San Juan Province, a key mining hub and solar energy producer. The project aims to improve energy reliability, enable the evacuation of renewable energy, and meet the increasing demand from large-scale lithium and copper operations.

The agreement was formalized at the French Embassy in Buenos Aires, in a meeting led by Ambassador Romain Nadal, and attended by Governor Marcelo Orrego, as well as senior provincial officials. Also present were Christel Bories, Chair of Eramet and the French-Argentine Chamber of Commerce, and a delegation of 20 French companies organized by MEDEF International.

The initiative reflects a broader strategic move by France and the European Union to deepen involvement in Argentina's mining value chain, particularly around lithium. According to AFD Director Lorena Chara, the EU sees Argentina as a long-term partner for critical raw materials, while EU Attaché Frédéric Maier emphasized the bloc's push for tangible projects before 2030.

This is one of the first concrete EU-backed energy infrastructure investments linked to Argentina's mining sector and sets a precedent for future cooperation across the country's northern and central provinces.