Please describe your proposed solution
<u>The Problem Statement</u>
Lithium is essential for clean energy technologies, particularly for electric vehicles (EVs), a sector projected to reach $1.3 trillion by 2028. Argentina, one of the world’s largest lithium producers; with significant reserves in Catamarca, Salta and Jujuy and is uniquely positioned to meet this growing demand as it holds over half of the world’s lithium reserves. Argentina’s Lithium Exports are projected to reach over $5.5 billion annually by 2025.
However, the lack of transparency in the lithium supply chain raises significant concerns regarding responsible sourcing and ESG (Environmental, Social, and Governance) compliance. Without traceability, the sector risks limiting export opportunities and access to financing, as global investors increasingly prioritize sustainable and ethically sourced materials. It is estimated that over 50% of the entire Argentinian lithium industry is affected by these changing demands from consumers and investors.
To meet international benchmarks such as the EU Battery Regulation, which comes into effect in 2025, and global sustainability frameworks like the Global Reporting Initiative (GRI), Argentina's lithium industry must address issues surrounding environmental impacts and social governance. The GRI standards emphasize environmental stewardship (e.g., water use, emissions), social performance (e.g., labor practices, community relations), and governance (e.g., anti-corruption measures). These frameworks help ensure that lithium sourcing is sustainable, ethical, and transparent, building trust in global markets.
<u>Our Solution:</u>
We aim to address these challenges by implementing Palmyra Pro, an enterprise traceability solution across several target regions. This will be pioneered in collaboration with a leading Argentine lithium company (Sol Litio) and industry experts from the Mercosur Chamber of Commerce & Latin America Lithium Chamber (Calbamerica), to ensure compliance with ESG standards, enhance transparency and leverage tokenization technologies on over 56000 hectares of lithium rich land being primed for lithium sourcing, extraction and refinement of no less than 1000 tons of battery grade lithium annually with a potential value of USD $280 million.
Key Components of the Solution:
- RWA Tokenization and Traceability: Palmyra Pro enables real-world asset (RWA) tokenization as well as the ability to trace lithium from extraction to export. This blockchain-based solution ensures transparency throughout the supply chain, issuance of on-chain provenance and assets, providing verifiable data on each batch, and offering greater visibility to regulators, international buyers and financiers.
- IoT Devices for Real-Time Monitoring:We will leverage IoT devices to monitor key environmental metrics where required, such as water usage and emissions in real time. This data will enable continuous monitoring of mining activities, ensuring transparency and helping companies optimize operations while minimizing environmental impacts.
- Digital Credentials for Verification: Palmyra Pro will issue cryptographic digital credentials at critical stages of the supply chain, certifying that lithium is sourced responsibly and signed off by the relevant stakeholders. These credentials will provide stakeholders with a reliable way to verify the provenance and integrity of the lithium they purchase, ensuring ethical sourcing.
- Focus on ESG Compliance: Our solution will align itself to the upcoming EU Battery Regulation and GRI standards, which are global benchmarks for reporting on sustainability and responsible business practices. By integrating these standards, we ensure that Argentina’s lithium industry meets the growing demand for ethical sourcing, unlocking access to export markets and financing.
- Creating the Blueprint for the LATAM Roll-out Plan with The Mercosur Chamber of Commerce & Latin America Lithium Chamber (Calbamerica): The two Chambers will support the design of a broader blueprint to roll-out the solution across additional lithium projects, as well as facilitate partnerships, training, and compliance support for a sustainable LATAM mining ecosystem.
Our project’s mission around sustainability and transparency is very much aligned with the work that Cardano has done to date. We believe it would be a great addition to empower businesses in the region and further demonstrate real-world use cases on Cardano.
<u>Our Partners:</u>
Sol Litio: a leading player in the Argentina Lithium mining sector; expertise on the acquisition and extraction of Lithium. The business is well-known for their strong vision to drive sustainable and clean energy solutions.
Latin America Lithium Chamber (Calbamerica): Calbamerica is a leading organization committed to sustainable development of the lithium industry in Latin America. Through the promotion of the lithium industry, they seek to generate employment, boost the regional economy and contribute to the transition towards a cleaner and more efficient energy. They believe in a future where energy is accessible to all and where the environment is protected. This Chamber is founded by Pablo Rutigliano who is the Co-Founder of Atomico3 (a lithium reserved backed token).
The Mercosur Chamber of Commerce: The Mercosur Chamber of Commerce is a private organization that facilitates trade and investment between Mercosur member countries and international markets. Through its services, such as international trade consulting, exporters' clubs and the development of commercial networks, the Chamber connects companies and governments to promote regional economic development by representing the interests of the private sector.
LITHIUM ARGENTINA INVESTMENTS S.A.
A private lithium refinement and production company, holding 56,317 hectares of lithium mines in the Salar de Antofalla, Catamarca Province, Argentina. These sites have secured environmental impact and exploration authorizations and are included in the NI 43-101 certification as per Toronto Stock Exchange regulations.