Lithium Argentina Receives RIGI Approval for Cauchari-Olaroz Stage 2 Expansion

On May 14, 2026 Lithium Argentina announced that the evaluation committee under Argentina’s Large Investment Incentive Regime (RIGI) approved the Stage 2 expansion of the Cauchari‑Olaroz lithium brine operation. Stage 2 will add 45,000 tpa of lithium carbonate equivalent (LCE) to the existing 40,000 tpa Stage 1, bringing total capacity to 85,000 tpa. The approval locks in 30 years of foreign‑exchange, fiscal, and customs stability, including a reduced corporate income tax (25% vs. 35%), duty‑free imports of capital goods, and the ability to retain export proceeds offshore. The environmental permit was submitted in December 2025, and a definitive development plan is expected in mid‑2026. The company also noted that the Pozuelos‑Pastos Grandes (PPG) project, targeting 150,000 tpa LCE, has submitted its RIGI application in early 2026 and is attracting interest from potential strategic minority partners.

The RIGI approval is a significant de‑risking event for the Stage 2 expansion, as it ensures long‑term fiscal predictability and materially improves the project’s after‑tax economics. However, the approval was already anticipated: the Q1 2026 earnings release (May 12) explicitly stated that RIGI approval was expected in Q2 2026, and the application had been submitted in December 2025. Therefore, the news is confirmatory rather than surprising — it removes the last major regulatory uncertainty for Stage 2 but does not introduce new, unexpected information. The market had already priced in high confidence of approval given the progress on other aspects (environmental permit, resource update, and strong cash flow from Stage 1). Consequently, while positive, it lacks the element of a “game changer” or novel material revelation. The stock’s immediate reaction cannot be observed because the price data ends May 13, but the run‑up from ~$9 in March to $16 in early May suggests much of the good news was already discounted. The approval does reinforce the company’s growth narrative and supports the mid‑2026 development plan target, but it is the expected outcome of a well‑flagged regulatory process.

Lithium Argentina (NYSE/TSX: LAR) is a lithium carbonate producer focused on the Cauchari‑Olaroz salmuera (brine) operation in Jujuy, Argentina, operated through the Exar joint venture with Ganfeng Lithium (LAR owns 44.8% of Minera Exar, Ganfeng ~55.2%). Stage 1, commissioned in 2023, has a nameplate capacity of 40,000 tpa LCE and produced ~34,100 tonnes in 2025, achieving cost improvements that brought cash operating costs to ~$5,400/t. The company is also advancing a regional growth hub: the PPG project (Pozuelos‑Pastos Grandes, Sal de la Puna) in Salta province, structured as a separate JV with Ganfeng (67/33) and targeting 150,000 tpa LCE in three phases, underpinned by 15.1 Mt LCE in measured & indicated resources.