Lithium Argentina and Ganfeng Announce PPG Scoping Study Results and Stage 1 Environmental Approval

Executive Summary

• Lithium Argentina announced the results of a scoping study for the Pozuelos‑Pastos Grandes (PPG) lithium brine project, highlighting a 150,000 tpa LCE production platform with an after‑tax NPV8% of $8.1 billion and IRR of 33% at a $18,000/LCE price.
• The Salta provincial government issued the Environmental Impact Statement (DIA) for Stage 1, clearing a key permitting hurdle; RIGI application is targeted for H1 2026.
• Capital cost estimates are $3.3 billion for the full life‑of‑project and $1.1 billion for Stage 1, with operating cash costs of $5,027/t LCE and AISC of $5,351/t.

Key Details

• Ownership Structure (New JV): Ganfeng – 67%; Lithium Argentina – 33%.
• Production Capacity: 150,000 tpa LCE in three 50,000 tpa stages; Stage 1: 50,000 tpa.
• Resource Size: 15.1 Mt LCE measured & indicated (13.2 Mt measured + 1.8 Mt indicated).
• Economic Highlights (Base Case – $18,000/LCE):
• After‑tax NPV8%: $8.1 billion
• After‑tax NPV10%: $5.8 billion
• IRR: 32.7%
• Payback period: 7 years
• Capital Cost Estimates:
• Full project: $3.3 billion (incl. 16% contingency) – direct costs: $3.125 bn; indirect: $176 m.
• Stage 1: $1.124 billion (incl. 16% contingency).
• Operating Cost Estimates:
• Full‑project cash cost: $5,027/t LCE
• AISC: $5,351/t LCE
• Stage 1 cash cost: $5,344/t LCE.
• Cost Breakdown (Full Project): Reagents $1,444; Energy $1,481; Labour $381; Maintenance $429; Salts harvesting $291; G&A $98; Others $664; Contingency $239.
• Sensitivity to Lithium Price:
• At $12,000/LCE → NPV8% $3.6 bn, IRR 21.1% (payback 10 yr).
• At $20,000/LCE → NPV8% $9.6 bn, IRR 36.1% (payback 6.7 yr).
• Financing Pathway: Jointly pursuing debt, offtake and minority equity; RIGI regime expected to improve after‑tax cash flow by ~$0.9 bn NPV and raise IRR ~7.6%.
• Regulatory Milestones: DIA approval for Stage 1 received 7 Nov 2025; RIGI application slated H1 2026.
• Technical Report: NI 43‑101 compliant report to be filed within 45 days (by late Dec 2025).
• Webcast/Conference Call: 10 Nov 2025, 8:00 am ET – discussion of Q3 2025 results and scoping study.

Notable Quotes

“We are very pleased to have received environmental approval for Stage 1 from the Salta government… PPG highlights our contribution to Argentina’s growing role in advancing a diversified and competitive global supply chain for lithium chemicals.” – Sam Pigott, President & CEO, Lithium Argentina