Tech Magnates Musk, Milei Meet Amid Argentina’s Debt Crisis: Lithium Diplomacy Begins

In a Texas Tesla electric car factory, a simmering bromance finally emerged into the public eye. On one side, the dynamic billionaire and tech magnate, Elon Musk, known for his uncensored tirades against “wokeness” and ambitious plans for an interplanetary human society. On the other, the fiercely individualistic Argentine President, Javier Milei, a proclaimed anarcho-capitalist with a penchant for resurrecting his late pets and a dogged determination to dismantle state controls.

These two distinct personalities, drawn together by an ideological harmony, finally met face to face after months of mutual adulation exchanged across social media – a bonding hailed as a rendezvous forged in the crucible of a free-market ideology.

Their followers on the right were exhilarated as both magnates celebrated their real-world camaraderie digitally. Musk, posting on social media platform X (formerly known as Twitter until his acquisition in 2022), captioned a picture of them elatedly giving double thumbs-up saying, “To an exciting & inspiring future!” Parallelly, Milei’s post, featuring a selfie of the duo and his characteristic leather bomber attire, echoed his love for freedom.

Press were barred at the meeting, with only a brief statement flowing from Milei’s office, sharing the duo’s discourse that spanned anticipated entrepreneur-friendly subjects (driving entrepreneurship by cutting red-tape) to somewhat tangential topics (concern about falling birth rates). According to Milei’s office, the president pledged backing for Musk in his clash with Brazilian authorities stemming from Musk’s alleged defiance of a judge’s order to block certain accounts on social media platform X.

The pair concurred on hosting an event in Argentina aimed at fostering libertarian principles, but didn’t share more. However, beneath the congenial photo-ops and clips of Milei taking Musk’s futuristic Cybertruck for a spin, their meeting bore considerable implications for Argentina.

Support from the U.S. is vital for Argentina as it teeters owing over $42 billion to the International Monetary Fund. With resurging leftist administrations from Chile to Brazil, experts suggest that Argentina may be positioned as a pivotal strategic ally for the U.S. “There’s a chance that Argentina can fill this vacuum and eventually be a strategic partner for the U.S.,” opines Sergio Berensztein, a Buenos Aires-based political consultant.

His statement echoes the sentiment behind Musk’s recent actions, having delivered Starlink satellite internet services to Argentina last month, a decision celebrated by Argentine farmers in remote locations.

Gerardo Werthein, Argentina’s ambassador to the U.S., confirmed Musk and Milei had dialogue about Argentina’s considerable resource reserves, particularly lithium, a vital component in electric car batteries.

Milei’s pro-market leanings and alignment with U.S. policy, pots a divergence from years of left-wing, interventionistic regimes, hinting at a hopeful prospect for the U.S. to rely on Argentina for lithium and other crucial metals, potentially disrupting China’s control over the battery supply chain.

This coincides with analysts’ predictions that the U.S.’ energy shift will demand significantly more lithium and other mandatory commodities than what the nation predicts to yield.

Ben Steinberg, ex Department of Energy senior adviser, conveyed the U.S’s intention to establish localized supply chains rather than having to ship materials across the globe, “The U.S. has a lot of interest in working domestically and with South American countries like Argentina.”