Lithium Argentina and Ganfeng Lithium have signed a letter of intent to jointly develop and consolidate the Pozuelos-Pastos Grandes (PPG) basins in Argentina, aiming to create one of the world’s largest lithium brine operations. The agreement covers Ganfeng’s wholly owned Pozuelos-Pastos Grandes project, the jointly owned Pastos Grandes project (85% Lithium Argentina, 15% Ganfeng), and the Sal de la Puna project (65% Lithium Argentina, 35% Ganfeng), bringing together a significant portfolio of lithium resources in the country’s prolific lithium triangle Lithium Argentina and Ganfeng join forces.
The regional development plan targets a combined production capacity of up to 150,000 tonnes per year of lithium carbonate equivalent, using a phased approach that incorporates both solar evaporation and direct lithium extraction (DLE) technology. A 5,000 t/y DLE demonstration plant is currently being manufactured for installation at the nearby Cauchari-Olaroz operation, with completion expected later this year. This demonstration plant is designed to support the adoption of new processing technology, improving efficiency, reducing water usage, and lowering overall production and capital costs Giant Lithium Venture: Argentina-Ganfeng Unite.
In addition to lithium carbonate, the regional plan includes the production of lithium chloride, providing added flexibility to meet evolving battery market requirements. The consolidation is expected to unlock significant synergies, resulting in a larger, lower-cost operation than could be achieved on a standalone basis. Both companies are exploring financing options, including collaboration with potential customers and strategic partners for offtake and minority ownership interests Lithium Argentina and Ganfeng Advance Plan.
The formation of the new joint venture remains subject to the negotiation and finalization of definitive documentation, completion of the regional development plan, regulatory approvals, and other customary closing conditions. If successful, the project would further establish Argentina as a global leader in lithium production, supporting the growing demand for battery materials worldwide.
