Lithium Argentina AG and Chinese lithium giant Ganfeng Lithium Group are deepening their partnership with a new joint venture covering three major lithium projects in Argentina, alongside a $180 million strategic investment aimed at strengthening Lithium Argentina’s balance sheet and pushing back a looming debt repayment.

 

The companies said they have signed definitive agreements to consolidate the Pozuelos-Pastos Grandes projects in Salta province into a single joint venture, while Ganfeng will provide Lithium Argentina with a six-year unsecured convertible note carrying a 4% annual coupon.

 

The deal gives Lithium Argentina a financial lifeline ahead of $259 million in convertible debt due in January 2027. The company plans to use the Ganfeng proceeds, together with cash on hand, to repay that debt in full.

 

The $180 million note will be convertible into Lithium Argentina shares at $12.50 apiece, roughly a 96% premium to the company’s five-day NYSE volume-weighted average price through August 21.

 

Sam Pigott, CEO of Lithium Argentina, said the transactions would bolster the company’s finances while limiting shareholder dilution.

 

"These transactions strengthen our balance sheet and minimize dilution for our shareholders, while positioning both Cauchari-Olaroz and PPG to deliver significant value. At Cauchari-Olaroz, with over $300 million of liquidity at the operation, access to low-cost financing and substantial free cash flow generation, we are strongly positioned to fund the Stage 2 expansion organically and accelerate our growth plans. 

 

"At PPG, the consolidated joint venture brings together three complementary projects into a single large scale operation - strengthening our joint financing process already underway and preserving every option to unlock its full value for shareholders."

 

The new PPG joint venture will combine Ganfeng’s Pozuelos-Pastos Grandes project with Lithium Argentina’s Pastos Grandes and Sal de la Puna projects, creating a consolidated basin-wide development in Salta.

 

Ganfeng will own 67% of the venture, while Lithium Argentina will hold 33%. Ganfeng will operate the project through its Salta team, with major decisions—including development plans, financing and budgets—requiring approval from both partners.

 

The partners are targeting 150,000 tonnes per year of lithium carbonate equivalent (LCE) across three development phases, using shared infrastructure and what the companies describe as one of the world’s largest consolidated lithium brine resource bases.

 

The projects have attracted a combined historical investment of approximately $1.8 billion, including property acquisitions and development.

 

The companies are also pursuing project-level financing and potentially bringing in a minority strategic investor. An application under Argentina’s RIGI investment incentive regime was submitted in the first quarter of 2026, covering the full 150,000-tpa development plan. Approval is expected by the end of the year.

 

The transaction marks another major commitment by Ganfeng to Lithium Argentina and the country’s lithium sector. Ganfeng already owns approximately 9.6% of Lithium Argentina’s outstanding shares and is a major partner in the Cauchari-Olaroz lithium brine operation in Jujuy.

 

Wang Xiaoshen, CEO of Ganfeng, said the latest agreements build on nearly a decade of cooperation between the companies.

 

"The PPG JV and this Strategic Investment reflect the strength of a partnership built over nearly a decade and more than $2 billion of combined investment in Argentina’s lithium sector. At Cauchari-Olaroz, the largest lithium brine operation in Argentina, we have demonstrated what our companies can achieve together, and this latest investment reflects the strong long-term value Ganfeng sees in Lithium Argentina and our confidence in the growth we are building. 

 

"Together, we are advancing a shared vision to grow to over 200,000 tonnes per annum of LCE capacity - bringing advanced processing technologies, jobs and investment to make Argentina the leading source of growth in low-cost, environmentally responsible lithium chemicals production."

 

Lithium Argentina ended the second quarter with $100 million in cash and equivalents and received another $27 million distribution from Cauchari-Olaroz in the third quarter.

 

Combined with the Ganfeng investment, that cash is expected to cover the company’s $259 million convertible debt repayment due in January.

 

At the same time, Lithium Argentina plans to terminate its existing $130 million debt facility, releasing the associated security and preferential offtake rights.

 

The new Ganfeng note is unsecured and carries no offtake rights or other commercial arrangements. It matures in 2032 unless converted or redeemed earlier.

 

If Ganfeng converts the note in full, it would receive approximately 14.4 million additional Lithium Argentina shares, lifting its ownership to about 16.1% on a fully diluted basis. Conversion is capped at 19.99% of the company’s issued and outstanding shares.