Lithium Argentina and Ganfeng Advance Plan to Jointly Develop the Pozuelos-Pastos Grandes Basins
Lithium Argentina (TSX: LAR, NYSE: LAR) has signed a Letter of Intent with Ganfeng Lithium to jointly develop the Pozuelos-Pastos Grandes (PPG) basins in Argentina. The partnership aims to consolidate multiple projects: Ganfeng's wholly-owned Pozuelos-Pastos Grandes project, the jointly-owned Pastos Grandes project (85% LAR, 15% Ganfeng), and Sal de la Puna project (65% LAR, 35% Ganfeng).
The development plan targets a combined capacity of up to 150,000 tonnes per annum of lithium carbonate equivalent, utilizing solar evaporation and direct lithium extraction (DLE) technology. A 5,000 tpa DLE demonstration plant is being manufactured for installation at the Cauchari-Olaroz operation, expected to complete later this year.
The companies are exploring financing options, including potential customer collaborations and strategic partnerships for offtake and minority ownership. The joint venture remains subject to definitive documentation, development plan completion, regulatory approvals, and other closing conditions.
Lithium Argentina (TSX: LAR, NYSE: LAR) ha firmato una Lettera di Intenti con Ganfeng Lithium per sviluppare congiuntamente i bacini di Pozuelos-Pastos Grandes (PPG) in Argentina. La partnership mira a consolidare diversi progetti: il progetto Pozuelos-Pastos Grandes interamente posseduto da Ganfeng, il progetto Pastos Grandes in joint venture (85% LAR, 15% Ganfeng) e il progetto Sal de la Puna (65% LAR, 35% Ganfeng).
Il piano di sviluppo prevede una capacità combinata di fino a 150.000 tonnellate all'anno di equivalente carbonato di litio, utilizzando tecnologia di evaporazione solare ed estrazione diretta di litio (DLE). Una pianta dimostrativa DLE da 5.000 tpa è in fase di produzione per l'installazione presso l'operazione Cauchari-Olaroz, prevista per essere completata entro la fine di quest'anno.
Le aziende stanno esplorando opzioni di finanziamento, comprese potenziali collaborazioni con clienti e partnership strategiche per l'acquisto e la proprietà minoritaria. La joint venture rimane soggetta a documentazione definitiva, completamento del piano di sviluppo, approvazioni normative e altre condizioni di chiusura.
Lithium Argentina (TSX: LAR, NYSE: LAR) ha firmado una Carta de Intención con Ganfeng Lithium para desarrollar conjuntamente las cuencas de Pozuelos-Pastos Grandes (PPG) en Argentina. La asociación tiene como objetivo consolidar múltiples proyectos: el proyecto Pozuelos-Pastos Grandes de propiedad total de Ganfeng, el proyecto Pastos Grandes en copropiedad (85% LAR, 15% Ganfeng) y el proyecto Sal de la Puna (65% LAR, 35% Ganfeng).
El plan de desarrollo tiene como meta una capacidad combinada de hasta 150,000 toneladas por año de equivalente de carbonato de litio, utilizando tecnología de evaporación solar y extracción directa de litio (DLE). Se está fabricando una planta demostrativa DLE de 5,000 tpa para su instalación en la operación Cauchari-Olaroz, que se espera completar a finales de este año.
Las empresas están explorando opciones de financiamiento, incluidas colaboraciones potenciales con clientes y asociaciones estratégicas para la compra y la propiedad minoritaria. La empresa conjunta sigue sujeta a documentación definitiva, finalización del plan de desarrollo, aprobaciones regulatorias y otras condiciones de cierre.
리튬 아르헨티나 (TSX: LAR, NYSE: LAR)는 간펑 리튬과 아르헨티나의 포수엘로스-파스토스 그란데스(PPG) 분지를 공동 개발하기 위한 의향서를 체결했습니다. 이 파트너십은 여러 프로젝트를 통합하는 것을 목표로 합니다: 간펑이 전적으로 소유한 포수엘로스-파스토스 그란데스 프로젝트, 공동 소유의 파스토스 그란데스 프로젝트(85% LAR, 15% 간펑), 그리고 살 데 라 푸나 프로젝트(65% LAR, 35% 간펑)입니다.
개발 계획은 연간 최대 150,000톤의 리튬 탄산염 동등량의 결합 용량을 목표로 하며, 태양 증발 및 직접 리튬 추출(DLE) 기술을 활용합니다. 5,000 tpa DLE 시연 플랜트가 카우차리-올라로즈 운영에 설치될 예정으로, 올해 말까지 완공될 것으로 예상됩니다.
회사는 고객 협력 및 소수 지분을 위한 전략적 파트너십을 포함한 자금 조달 옵션을 탐색하고 있습니다. 합작 투자는 최종 문서화, 개발 계획 완료, 규제 승인 및 기타 종료 조건에 따라 달라집니다.
Lithium Argentina (TSX: LAR, NYSE: LAR) a signé une Lettre d'Intention avec Ganfeng Lithium pour développer conjointement les bassins de Pozuelos-Pastos Grandes (PPG) en Argentine. Le partenariat vise à consolider plusieurs projets : le projet Pozuelos-Pastos Grandes entièrement détenu par Ganfeng, le projet Pastos Grandes en co-propriété (85% LAR, 15% Ganfeng) et le projet Sal de la Puna (65% LAR, 35% Ganfeng).
Le plan de développement vise une capacité combinée allant jusqu'à 150 000 tonnes par an d'équivalent carbonat de lithium, en utilisant des technologies d'évaporation solaire et d'extraction directe de lithium (DLE). Une usine de démonstration DLE de 5 000 tpa est en cours de fabrication pour être installée sur l'opération Cauchari-Olaroz, dont l'achèvement est prévu pour la fin de cette année.
Les entreprises explorent des options de financement, y compris des collaborations potentielles avec des clients et des partenariats stratégiques pour l'achat et la propriété minoritaire. La coentreprise reste soumise à la documentation définitive, à l'achèvement du plan de développement, aux approbations réglementaires et à d'autres conditions de clôture.
Lithium Argentina (TSX: LAR, NYSE: LAR) hat ein Absichtsschreiben mit Ganfeng Lithium unterzeichnet, um gemeinsam die Pozuelos-Pastos Grandes (PPG) Becken in Argentinien zu entwickeln. Die Partnerschaft zielt darauf ab, mehrere Projekte zu konsolidieren: das vollständig im Besitz von Ganfeng befindliche Pozuelos-Pastos Grandes Projekt, das gemeinsam besessene Pastos Grandes Projekt (85% LAR, 15% Ganfeng) und das Sal de la Puna Projekt (65% LAR, 35% Ganfeng).
Der Entwicklungsplan zielt auf eine kombinierte Kapazität von bis zu 150.000 Tonnen pro Jahr an Lithiumcarbonat-Äquivalent ab, wobei die Technologien der solarer Verdampfung und der direkten Lithiumextraktion (DLE) genutzt werden. Eine DLE-Demonstrationsanlage mit einer Kapazität von 5.000 tpa wird derzeit für die Installation bei der Cauchari-Olaroz-Betrieb hergestellt, die voraussichtlich noch in diesem Jahr abgeschlossen wird.
Die Unternehmen prüfen Finanzierungsoptionen, einschließlich potenzieller Kundenkooperationen und strategischer Partnerschaften für Abnahme und Minderheitsbeteiligung. Das Joint Venture unterliegt weiterhin der endgültigen Dokumentation, dem Abschluss des Entwicklungsplans, den behördlichen Genehmigungen und anderen Abschlussbedingungen.
- Partnership consolidates multiple lithium projects under single development plan
- Large production capacity target of 150,000 tpa of LCE
- DLE technology expected to reduce production costs and environmental footprint
- Potential for significant operational synergies through consolidated development
- Joint venture still subject to multiple conditions and approvals
- DLE technology still unproven at commercial scale - pending demonstration plant results
Insights
The LOI between Lithium Argentina and Ganfeng represents a strategic consolidation of lithium assets in the Pozuelos-Pastos Grandes basins that could generate significant operational efficiencies. The planned 150,000 tpa LCE capacity would establish this project as a major global lithium supplier at a time when battery-grade materials remain in high demand.
Particularly noteworthy is the dual-technology approach combining conventional solar evaporation with direct lithium extraction (DLE). The 5,000 tpa DLE demonstration plant being manufactured for nearby Cauchari-Olaroz will serve as a crucial proving ground for this technology that promises improved efficiency, lower water consumption, and reduced reagent requirements – addressing key environmental and operational challenges in lithium production.
The regional development plan's flexibility to produce both lithium carbonate and lithium chloride demonstrates foresight in addressing evolving battery chemistry requirements. This consolidation should enable the companies to optimize extraction across multiple brine sources, potentially improving recovery rates and extending resource life.
However, investors should note this remains at the LOI stage with multiple conditions pending, including definitive documentation and regulatory approvals. The phased development approach indicates prudent risk management but suggests a gradual production ramp-up. The successful implementation will depend on the demonstration plant's performance and the finalization of technical details in the regional development plan.
This partnership represents a compelling strategic move that leverages the companies' complementary assets and expertise to develop a potentially lower-cost, larger-scale lithium operation than either could achieve independently. The consolidation creates a simplified ownership structure across previously fragmented basin assets, which should streamline development decisions and capital allocation.
The exploration of financing options with potential customers and strategic partners indicates a capital-efficient approach that could reduce direct funding requirements while securing offtake agreements – a prudent strategy in the capital-intensive lithium sector. The phased development approach also suggests disciplined capital deployment that aligns capacity expansion with market demand.
Building on their existing operational relationship at Cauchari-Olaroz provides implementation credibility and suggests established protocols for joint decision-making. The DLE technology implementation could potentially position the operation in the lower quartile of the global cost curve if successfully scaled, creating sustainable competitive advantage.
While the 150,000 tpa target capacity is ambitious, the lack of specified timeline and capital requirements makes valuation impact difficult to quantify precisely. The multiple conditions preceding joint venture formation – including definitive documentation and regulatory approvals – introduce execution uncertainty and suggest material developments remain several quarters away. The strategic merit is clear, but patient capital will be required to realize the full value potential of this regional development initiative.
ZUG, Switzerland, April 11, 2025 (GLOBE NEWSWIRE) -- Lithium Argentina AG. (“Lithium Argentina” or the “Company”) (TSX: LAR) (NYSE: LAR) is pleased to announce that it has executed a Letter of Intent (“LOI”) with Ganfeng Lithium Co. Ltd. (“Ganfeng”) to advance a plan to jointly develop the Pozuelos-Pastos Grandes basins, which includes Ganfeng’s wholly-owned Pozuelos-Pastos Grandes project, the jointly-owned Pastos Grandes project (
“Following the ramp-up at the Cauchari-Olaroz lithium operation over the past year, we are excited to build on our experience and strengthen our proven partnership model to support these growth plans,” said Sam Pigott, President and CEO of Lithium Argentina. “Our ongoing efforts to finalize the regional development plan at PPG are encouraging and should present a compelling, low-cost solution to help meet future battery market demand. Combined with our strategic flexibility and collaborative approach, we are well positioned to leverage innovative processing technologies and a global network of partners and customers – all in pursuit of our shared goal of establishing Argentina as a leader in the lithium industry.”
The LOI provides a framework for Ganfeng and Lithium Argentina to consolidate PPG and finalize the regional development plan on the combined resources. Development planning is advancing based on a phased approach utilizing solar evaporation and direct lithium extraction (“DLE”) with a combined capacity targeting up to 150,000 tonnes per annum (“tpa”) of lithium carbonate equivalent (“LCE”). In addition to lithium carbonate, the regional development plan considers the production of lithium chloride to provide added flexibility for use in battery markets. The regional development plan is expected to unlock significant synergies that will result in a larger, lower-cost operation than could be achieved on a standalone basis.
A 5,000 tpa DLE demonstration plant is currently being manufactured for installation at the nearby Cauchari-Olaroz lithium operation that is jointly managed by Lithium Argentina and Ganfeng. The completion of the DLE demo plant is expected later this year and designed to support the new processing technology, resulting in improved efficiencies and lower overall production and capital costs while reducing the operation’s environmental footprint through lower water usage and a reduced need for reagents.
Ganfeng and Lithium Argentina are jointly exploring financing options for PPG, including collaboration with potential customers and strategic partners for offtake and minority ownership interests.
The formation of the new joint venture for PPG remains subject to a number of conditions, including, without limitation, the negotiation and finalization of definitive documentation, completion of the regional development plan, receipt of any required regulatory approvals and third-party consents, and the satisfaction of other customary closing conditions.
ABOUT LITHIUM ARGENTINA
The Company, in partnership with Ganfeng, operates the Cauchari-Olaroz lithium brine operation in Argentina and is advancing additional lithium resources in the region. Lithium Argentina currently trades on the TSX and on the NYSE.
For further information contact:
Investor Relations
Telephone: +1 778-653-8092
Email: kelly.obrien@lithium-argentina.com
Website: www.lithium-argentina.com
FORWARD-LOOKING INFORMATION
This news release contains “forward-looking information” and “forward-looking statements” (which we refer to collectively as forward-looking information) under the provisions of applicable securities legislation. Forward-looking information can be identified by the use of words such as seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “propose”, “potential”, “target”, “intend”, “could”, “might”, “should”, “believe”, “scheduled”, “implement” and similar words or expressions. All statements, other than statements of historical fact, are forward-looking information. Forward-looking information in this news release include, without limitation, information with respect to the following matters or the Company’s expectations relating to such matters: the formation of a joint venture in respect of PPG and the value derivable therefrom, the Company’s economic interest in PPG, the finalization of the regional development plan, financing of the development of PPG, the involvement of third-party investors, the use and effects of DLE technology, , operating and economic parameters; timing and amount of future production; and expected capacity of production.
Forward-looking information may involve known and unknown risks, assumptions
Forward-looking information may involve known and unknown risks, assumptions and uncertainties which may cause the Company’s actual results or performance to differ materially. This information reflects the Company’s current views with respect to future events and is necessarily based upon a number of assumptions that, while considered reasonable by the Company today, are inherently subject to significant uncertainties and contingences, and accordingly, the Company can give no assurance that these assumptions and expectations will prove to be correct. With respect to forward-looking information included in this news release, the Company has made assumptions regarding, among other things: the ability to form the joint venture in respect of PPG; the ability to finalize the regional development plan; the ability to finance the development of PPG; the ability to attract third party investors for the development of PPG; current technological trends; including the successful implementation of DLE technology; the business relationship between the Company and its joint venture partner; ability to fund its operations; the ability to operate in a safe and effective manner; uncertainties relating to maintaining mining, exploration, environmental and other permits or approvals in Argentina; demand for lithium; impact of increasing competition in the lithium business, including the Company’s competitive position in the industry; general economic conditions; stability and support of legislative, regulatory and community environment in the jurisdiction where it operates; estimates of and changes to market prices for lithium and commodities; estimates costs for the project or operation; estimates of mineral resources and mineral reserves, including whether mineral resources will ever be developed into mineral reserves; reliability of technical data; and the ability to achieve full production; and accuracy of budget and estimates.
Forward-looking information also involves known and unknown risks that may cause actual results to differ materially, these risks include, among others: risk that the Company may not be able to form the joint venture in respect of PPG and derive value therefrom as anticipated, or at all; risk that the Company may not be able to finalize the regional development plan as anticipated, or at all; risk that the Company may not be able to finance the development of PPG as contemplated, or at all; risk that the Company may not be able to attract third party investors for the development of PPG as contemplated, or at all; risk that the Company will not be able to implement DLE technology; the operations may not operate and produce as planned; cost overruns; market prices affecting development of the operation; risks associated with co-ownership arrangements; risks with ability to successfully secure adequate financing if necessary; risks to the growth of the lithium markets; lithium prices; inability to obtain any future required governmental permits and that operations may be limited by government-imposed limitations; technology risk; inability to achieve and manage expected growth; political risk associated with foreign operations, including co-ownership arrangements with foreign domiciled partners; emerging and developing market risks; risks associated with not having production experience; operational risks; changes in government regulations; changes in environmental requirements; failure to obtain or maintain necessary licenses, permits or approvals; insurance risk; receipt and security of mineral property titles and mineral tenure risk; changes in project or operation parameters; uncertainties associated with estimating mineral resources and mineral reserves, including uncertainties regarding assumptions underlying such estimates; whether mineral resources will ever be converted into mineral reserves; opposition to the; geological or technical or processing problems; liabilities and risks; health and safety risks; unanticipated results; unpredictable weather; unanticipated delays; reduction in demand for lithium; inability to generate profitable operations; restrictive covenants in debt instruments; intellectual property risks; dependency on key personnel; currency and interest rate fluctuations; volatility in general market and industry conditions; Additional risks, assumptions and other factors are set out in the Company’s management discussion analysis and most recent Annual Report on Form 20-F, copies of which are available on SEDAR+ at www.sedarplus.ca
Although the Company has attempted to identify important risks and assumptions, given the inherent uncertainties in such forward-looking information, there may be other factors that cause results to differ materially. Forward-looking information is made as of the date hereof and the Company does not intend, and expressly disclaims any obligation to, update or revise the forward-looking information contained in this news release, except as required by law. Accordingly, readers are cautioned not to place undue reliance on forward-looking information.
FAQ
What is the production capacity target for the Lithium Argentina-Ganfeng PPG project?
What is the ownership structure of the Pastos Grandes project between Lithium Argentina and Ganfeng?
When is the 5,000 tpa DLE demonstration plant expected to be completed?
What are the main technologies being used in the PPG development project?
What products will the PPG project produce for the battery market?
