Lithium Argentina and Ganfeng to Develop 150,000 t/y Lithium Brine Operation in Argentina
Lithium Argentina is joining forces with Ganfeng Lithium Group to combine their respective lithium assets in Argentina’s Salta province, creating a large-scale brine operation with production potential of up to 150,000 tonnes per year of lithium carbonate equivalent (LCE).
Under a framework agreement, Ganfeng will hold a 67% stake in the new joint venture (JV), while Lithium Argentina will own 33%.
The stakes reflect contributions in resources, capital, and technology, with the deal expected to close by Q1 2026.
“This transaction builds on our successful partnership with Ganfeng at Cauchari-Olaroz, Argentina’s largest lithium operation,” said Lithium Argentina CEO Sam Pigott. “The new JV expands our footprint in the Pozuelos basin and creates a larger-scale operation with advanced technology, financial flexibility, and operational synergies.
It is a key milestone in our strategy to develop a diversified, scalable, and sustainable global lithium supply chain while creating lasting value for shareholders.”
The combined project, branded PPG, will employ a hybrid approach of direct lithium extraction (DLE) and solar evaporation.
A feasibility study is expected by year-end to support an application under Argentina’s Incentive Regime for Large Investments in the first half of 2026.
Ganfeng will also provide Lithium Argentina with a six-year $130-million debt facility at secured overnight financing rate plus 2.5%, to refinance corporate debt and fund project development.
The facility will be secured by Lithium Argentina’s equity in PPG and grants Ganfeng the right to offtake up to 50% of Lithium Argentina’s production from the initial development phase, capped at 6,000 t/y at market prices.
To date, the companies have invested approximately $1.8 billion in acquisition and development across the combined assets, laying the foundation for one of Argentina’s largest lithium brine operations.
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