Lithium Argentina, Ganfeng to enter joint venture

Executive Summary

• Lithium Argentina AG and Ganfeng Lithium Group have signed a framework agreement to create a new joint venture (PPG) that will combine the Pozuelos‑Pastos Grandes, Pastos Grandes, and Sal de la Puna lithium brine projects in Salta, Argentina.
• Upon closing (expected Q1 2026), Ganfeng will own 67% and Lithium Argentina 33% of the JV, with a target production capacity of up to 150,000 tpa LCE across three 50,000‑tpa phases.
• Ganfeng will provide Lithium Argentina with a $130 million six‑year debt facility (SOFR + 2.5%) and secure off‑take rights for up to 6,000 tpa of LCE from the initial phase.

Key Details

• Ownership Structure: 67% Ganfeng / 33% Lithium Argentina – based on resources, capital contributions, and technology inputs.
• Project Scope: Consolidates three contiguous brine assets (Pozuelos‑Pastos Grandes, Pastos Grandes, Sal de la Puna) into a single development platform.
• Production Goal: Up to 150,000 tonnes per annum of lithium carbonate equivalent (LCE) in three 50,000‑tpa phases; feasibility study results due end‑2025, RIGI application submission H1 2026.
• Technology: Hybrid processing using Direct Lithium Extraction (DLE) and solar evaporation to improve scalability and efficiency.
• Financing Commitment: Ganfeng to extend a $130 million senior debt facility for six years at SOFR + 2.5%, unsecured except for equity interest in the JV; pre‑payable without penalty.
• Off‑take Arrangement: Lithium Argentina will allocate up to 50% of its off‑take (capped at 6,000 tpa LCE) from the initial development phase to Ganfeng at market prices.
• Total Prior Investment: Approximately $1.8 billion invested by both parties in acquisition and development of the combined assets.
• Closing Timeline: Expected first quarter 2026, subject to definitive agreements, regulatory approvals, and stock‑exchange consents.
• Strategic Rationale: Leverages existing partnership (Cauchari‑Olaroz), expands Ganfeng’s presence in Argentina, provides Lithium Argentina with balance‑sheet de‑risking and access to advanced processing technologies.

Notable Quotes

“This transaction builds on our successful partnership with Ganfeng at Cauchari‑Olaroz… The new JV will provide access to advanced technologies, increased financial flexibility and meaningful operating synergies.” – Sam Pigott, President & CEO, Lithium Argentina AG