Lithium Argentina Announces Closing of $180M Strategic Investment from Ganfeng
Ganfeng Lithium closes an $180 million note, eliminating its 2027 debt overhang and securing the path to production at the PPG project.
Lithium Argentina AG announced the closing of an $180 million strategic investment from Ganfeng Lithium Group Co., Ltd. The investment was structured as a six-year unsecured convertible note bearing a 4.0% annual coupon. Conversion is priced at $12.50 per share, representing a ~96% premium to the 5-day VWAP at announcement.
Net proceeds, combined with existing corporate cash, will fully repay the $259 million convertible notes maturing in January 2027. The transaction terminates an existing $130 million debt facility, releasing associated security and preferential offtake rights.
The Pozuelos-Pastos Grandes (PPG) joint venture consolidation remains on track for completion by the end of September 2026. Assuming full conversion, Ganfeng's ownership increases from ~9.6% to ~16.1% on a fully diluted basis, capped at 19.99%.
Lithium Argentina AG (LAR) has closed a previously announced financing that resolves the company's near-term refinancing risk. The transaction fully extinguishes the $259 million debt due in January 2027, replacing it with a new maturity in 2032. This move materially strengthens the balance sheet with a lower net debt profile and a six-year maturity horizon, providing substantial operational flexibility.
The transaction aligns with the August 24, 2026 announcement and the broader strategic pivot toward the PPG joint venture. It validates the execution of the announced capital structure overhaul without introducing new surprises. Dilution is managed via a capped conversion and an accelerated redemption clause, which applies if shares exceed 130% of the conversion price for 20 trading days, limiting immediate equity impact.
The deal reinforces the strategic partnership with Ganfeng, which now holds 67% of the PPG JV and 46.7% of the operating Cauchari-Olaroz JV. This alignment supports the combined vision of producing more than 200,000 tpa of lithium carbonate equivalent (LCE).
Lithium Argentina AG is a Canadian-listed lithium developer focused on high-grade brine assets in Argentina. Its flagship asset is the Cauchari-Olaroz joint venture, which is 44.8% owned by Lithium Argentina, 46.7% by Ganfeng, and 8.5% by JEMSE. The project is currently producing approximately 9,300 tonnes per quarter near design capacity, with cash operating costs averaging around $5,600 per tonne.
The company’s growth pipeline includes a Stage 2 expansion at Cauchari-Olaroz targeting an additional 45,000 tonnes per annum of lithium carbonate equivalent (LCE), as well as the consolidated PPG project, which targets 150,000 tpa LCE across three phases. Lithium Argentina has secured RIGI approval for the Stage 2 expansion, providing 30 years of fiscal and foreign exchange stability. The company is also advancing a modular Direct Lithium Extraction (DLE) approach to accelerate initial growth capacity.