BUENOS AIRES, Oct 31 (Reuters) - Local mining officials

in northwest Argentina have approved a two-year permit for

Argentina Lithium & Energy Corp ( LILIF ) to kick off exploration

efforts in the Paso de Sico concession, the company said on

Thursday.

Argentina is pushing to accelerate investments in lithium,

the key battery metal, which is seen as a bright spot for the

battered South American economy that could power export growth

and boost much-needed foreign currency reserves.

Under the permit approval from the mining and energy

secretariat in Argentina's northwestern Salta province, the

company will launch a drilling program to evaluate lithium

concentrations in area salt flats, part of the Rincon Oeste

project.

It lies next to major miner Rio Tinto's similar lithium

development Proyecto Rincon.

Argentina Lithium & Energy Corp ( LILIF ) will now be able to better

evaluate Rincon Oeste's potential, its CEO Nikolaos Cacos, said

in a statement.