Lithium Argentina Announces $220 Million of New Debt Facilities Closed at Cauchari-Olaroz

Lithium Argentina AG has closed on $220 million in new unsecured debt facilities to fund the Stage 2 expansion of its Cauchari-Olaroz lithium brine operation. The financing comprises two tranches: a $50 million facility closed in June 2026 to replace short-term credit, and a $170 million syndicated facility closed in August 2026 with a three-year term and an interest rate under 5%.

The debt is guaranteed by partner Ganfeng Lithium, with Lithium Argentina providing a counter-guarantee for 49% of the outstanding debt. Proceeds are designated to strengthen the balance sheet, optimize capital structure by moving debt to the operating asset level, and fund the Stage 2 expansion targeting an additional 45,000 tonnes per annum of lithium carbonate equivalent (LCE). The financing follows the May 2026 RIGI approval and December 2025 environmental permit submissions for the expansion.

Cauchari-Olaroz ownership is split 44.8% Lithium Argentina, 46.7% Ganfeng, and 8.5% JEMSE (Jujuy Province government).

Lithium Argentina AG announced the execution of previously disclosed financing plans, aligning with its stated capital allocation strategy to fund the Stage 2 expansion. The transaction secures low-cost, long-dated funding with interest rates below 5%, shifting leverage to the operating asset level to improve corporate-level balance sheet metrics. This move materially de-risks the project timeline and is fully consistent with historical expectations set by the RIGI approval and prior debt facility announcements. The deal serves as a necessary capital stack completion rather than a market-moving surprise, introducing no unexpected upside or downside. Additionally, the counter-guarantee structure maintains Lithium Argentina's exposure to the project's success, tying its financial health directly to Cauchari-Olaroz's cash flow generation.

Lithium Argentina AG is a Canadian-listed mining company focused on lithium development in Argentina. Its flagship asset is the Cauchari-Olaroz lithium brine operation in the Jujuy Province. Stage 1 of the facility is currently producing approximately 40,000 tonnes per annum of lithium carbonate equivalent (LCE), operating at 97% of design capacity with cash operating costs of approximately $5,391 per tonne.

The company is pursuing a growth pipeline that includes a Stage 2 expansion at Cauchari-Olaroz, which targets an additional 45,000 tpa LCE. It also holds the Pozuelos-Pastos Grandes (PPG) project, where a scoping study outlines a 150,000 tpa LCE platform with an after-tax net present value (NPV) of $8.1 billion. Additionally, Lithium Argentina AG is advancing an ASX secondary listing to broaden its investor base in the Asia-Pacific region.