The Cauchari-Olaroz lithium brine operation, developed through Minera Exar S.A., has completed the closing of US$220 million in new unsecured debt facilities, further strengthening its financial position and expanding its financing flexibility as it continues advancing Stage 2, the expansion project designed to increase production capacity by an additional 45,000 tonnes per year of lithium carbonate equivalent (LCE).
By Panorama Minero
Cauchari-Olaroz is owned 44.8% by Lithium Argentina, 46.7% by Ganfeng, and 8.5% by JEMSE, the mining company of Jujuy Province.
The debt facilities are structured as follows:
- US$50 million facility: Closed in June 2026, with a two-year term, intended to refinance existing short-term credit facilities.
- US$170 million facility: Closed in August 2026 with a syndicate of international banks. This credit facility has a three-year term and an interest rate of below 5%.
Sam Pigott, President and CEO of Lithium Argentina, stated:
"These unsecured financings, obtained on highly competitive terms, reflect the confidence in Cauchari-Olaroz, the strength of our partnership with Ganfeng, and the operation's strong cash flow generation. Together with the recent approval under the RIGI regime, these new Debt Facilities strengthen our balance sheet and provide the financial flexibility needed to advance our long-term growth strategy. We look forward to sharing further details on Stage 2 as we complete the updated development plan over the coming months."
The Debt Facilities are unsecured, provide flexibility for future distributions from Cauchari-Olaroz, support additional borrowing capacity—including project financing—and will remain available for drawdowns through the second quarter of 2027.
They are backed by a guarantee from Ganfeng Lithium, while Lithium Argentina provides a counter-guarantee to Ganfeng covering 49% of the outstanding debt.
These Debt Facilities form part of Lithium Argentina's broader strategy to optimize its capital structure by utilizing financing at the operating asset level while reducing debt at the corporate level. The company expects this approach to improve financing efficiency and provide greater flexibility from both tax and foreign exchange management perspectives.
Next Steps
The company continues to advance Stage 2, and the recent approval of its RIGI application for the expansion further strengthens the project's development profile.
- Stage 2 Permitting: The environmental permit application was submitted in December 2025, supported by the completion of a basin-wide hydrogeological model, which underpins the planned production capacity for Stage 2.
- Stage 2 Development Plan: Technical and engineering studies remain underway, and the results of an updated development plan are expected to be presented over the coming months.
