Consolidation of the Pozuelos and Pastos Grandes Basins in Salta Province.
By Panorama Minero
Lithium Argentina AG. announced the execution of a framework agreement with Ganfeng Lithium Group Co. Ltd. to establish a new joint venture (New JV) consolidating Ganfeng’s solely owned Pozuelos- Pastos Grandes project with Lithium Argentina’s Pastos Grandes project (85% owned) and the Sal de la Puna project (65% owned), (“PPG”). Upon closing, Ganfeng will hold 67% and Lithium Argentina 33% of PPG, with ownership based on resources, capital contributions and technology inputs.
Highlights:
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Regional growth consolidation. Combining three contiguous lithium brine projects in Salta, into a newly formed joint venture, creating unified development platform.
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Global-scale operation. Targeting up to 150,000 tonnes per annum (tpa) of lithium carbonate equivalent (LCE) production capacity in three phases, positioning New JV among largest operations globally.
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Advanced processing technologies. Utilizing a hybrid of direct lithium extraction (DLE) and solar evaporation to enhance scalability and improve efficiency.
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Proven partnership model. Structured on the existing partnership between Ganfeng and Lithium Argentina used to develop the Cauchari-Olaroz Stage 1, leveraging the parties’ local expertise, operational teams and proximity in northern Argentina.
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Feasibility study nearing completion. Results expected to be released by year-end, to be incorporated into an application under Argentina's Incentive Regime for Large Investments (RIGI) targeted for submission in H1 2026.
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Combined financing effort. Both parties are jointly pursuing financing options to fund development costs, including collaboration with strategic partners and potential customers for off-take and minority equity interests and project financing.
“This transaction builds on our successful partnership with Ganfeng at Cauchari-Olaroz, Argentina’s largest lithium operation,” said Sam Pigott, President and CEO of Lithium Argentina. “With this transformative step forward, we are increasing our ownership into the Pozuelos basin and aligning our interests around a substantially larger-scale operation. The New JV will provide access to advanced technologies, increased financial flexibility and meaningful operating synergies. It represents an important milestone in our strategy to develop a diversified, scalable and sustainable global lithium supply chain while strengthening our balance sheet and creating lasting value for our shareholders.”
Project Details
Since acquiring the Pastos Grandes project through its purchase of Millennial Lithium in 2022, and its 65% interest in Sal de la Puna through the acquisition of Arena Minerals in 2023, Lithium Argentina has advanced a hydrogeological model, completed environmental baseline studies, update resource estimates and constructed a pilot evaporation pond system. Ganfeng acquired the Pozuelos-Pastos Grandes project in 2022 from Pluspetrol Resources for $1.0 billion and has since invested an additional $200 million to advance development, including infrastructure, a production wellfield and an over 2,000-person construction camp.
In total, Lithium Argentina and Ganfeng have invested approximately $1.8 billion in acquisition and development costs across the combined PPG assets.
The current development plan, with a feasibility study underway, targets a phased production capacity of up to 150,000 tpa of LCE in three phases of 50,000 tpa each. The feasibility study will evaluate both lithium carbonate and lithium chloride production to provide added flexibility for use in battery markets and will use a hybrid flowsheet combining DLE and solar evaporation to optimize scalability and efficiency. Results of the Feasibility Study are expected to be released by the end of 2025 and will be used to support a RIGI application, which is expected to be formally submitted in the first half of 2026.
The partners are jointly pursuing financing options to fund further development, including collaboration with potential customers and strategic partners for off-take agreements, minority equity interests and project financing.
