Home Argentina economy Argentina, Bolivia have bills in parliament to speed up transition to electric cars – MercoPress

Argentina, Bolivia have bills in parliament to speed up transition to electric cars – MercoPress


Argentina and Bolivia have bills in parliament to boost transition to electric cars

Tuesday, July 20, 2021 – 08:51 UTC

Montenegro explained that Bolivia also intended for agricultural vehicles to be powered by environmentally friendly energy sources

Just as the European Commission sent a draft electric vehicle bill to the European Parliament last week, the governments of Argentina and Bolivia are also taking similar paths.

The Argentine government said last week that it will have to increase local production of electric cars as it predicts a shortage of US dollars to import them

“Towards the end of this decade, a conversion to electric vehicles is on the way and we will work with a law to stimulate domestic production. If we remain a simple taker of technological resources from other countries, in addition to losing Argentine production and employment opportunities, we will not have the dollars to import, ”said Matías Kulfas, Minister of Productive Development.

The minister made these remarks during the launch of the Green Productive Development Plan, which envisages the use of lithium and copper extracted for the Argentine territory, the development of car batteries because the conversion of combustion engines to electrified engines seems inevitable.

Kulfas explained that to achieve these goals, “mining is the key” because the industry will require lithium and copper. Therefore, he called for sustainable mining that cares about the environment and integrates a value chain.

This plan is in line with the electromobility bill that the national government sent to Congress in March, under which the production of fossil-fueled vehicles would be banned from January 1, 2041.

As happened with the European bill, it is now up to Congress to vote on the matter.

Kulfas pointed out that the government was working alongside automakers, auto parts companies and unions, although the electromobility plan was not well received by local automakers, who expressed disappointment at not have been consulted before sending the bill to Congress. They also believe that the government must first address other more pressing issues, such as the high tax burden.

Argentina is a fertile land in terms of the presence of lithium, one of the key raw materials for electromobility, necessary for the production of batteries for electric cars. According to a 2018 report, 67% of the proven lithium reserves and around 50% of the global supply are concentrated in Argentina, Bolivia and Chile, which is why the region has become the “lithium triangle”.

Argentina “is the country with the greatest amount of resources with potential economic value, although no proven feasibility and profitability, with just over 20% of the world total. The lithium available there is mainly concentrated in three provinces: Catamarca, Jujuy and Salta, ”the USGS report said.

For the Inter-American Development Bank (IDB), Argentina has the potential to become the world’s largest producer of lithium carbonate, taking the benchmark commonly used to measure the productivity of the sector.

BMW has already confirmed an investment of 285 million euros to extract lithium from Argentina from 2022 and use it in the production of batteries for its electric cars. The supplier of the German brand will be Livent, a North American company based in Catamarca.

Meanwhile, Bolivia had removed import tariffs for electric and hybrid vehicles and their parts, in addition to other tax benefits.

Economy Minister Marcelo Montenegro announced last week that the measure aims to “help improve the environment”. and ?? energy saving and efficiency ?? in the country through the manufacture, assembly, purchase and import of electric agricultural vehicles and machinery.

“This tax incentive establishes a rate of 0% for the tariff tax and a reduction in the Specific Consumption Tax (ICE) for these electric and hybrid vehicles, so as to generate a favorable environment so that we can use this type of vehicle. and save energy, ?? he added.

?? Financial motivations ?? were also created for the manufacture, assembly and purchase of agricultural machinery and electric and hybrid vehicles, as well as equipment and accessories for the corresponding energy and decentralized production systems, continued the Minister. .

The objective is to promote the creation of “assembly plants” of this type of vehicles and machinery in the country to save energy, the authority said.

According to Montenegro, the standard establishes that the infrastructure of the electric vehicle charging system will be handed over to the National Electricity Company (ENDE), with the possibility that private investors can also do so if they wish.

We are convinced that this type of regulation will encourage, help the national economy, save energy and move to another phase where the Bolivian economy must also evolve in terms of modernizing its vehicle fleet with electric vehicles more efficient and more energy efficient. , ?? he added.

The minister also announced that a bill has been sent to the national legislator to reduce by one year the value added tax (VAT) levied on the import and marketing of capital goods, industrial installations , large capacity utility vehicles and heavy machinery for the agricultural sector. and the industrial sector.

Montenegro explained that the tariff for these imports was already zero. and now what will be done is ?? temporarily ?? lower VAT, aimed at promoting industrialization in the agricultural and industrial sectors.


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