Chinese mining major Ganfeng Lithium and Switzerland-based Lithium Argentina have formed joint Venture to develop projects to extract lithium from saline water. The JV aims to merge three neighbouring brine deposits : 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), (collectively, PPG) in Argentina’s Salta province into a single operation.

“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.”

The JV aims to target up to 150,000 tonnes per annum of lithium carbonate equivalent (LCE) production capacity in three phases, positioning new JV among largest operations globally.

Upon closing, Ganfeng will hold 67% and Lithium Argentina 33% of PPG, with ownership based on resources, capital contributions and technology inputs.

The project, known as PPG, will use a hybrid method combining solar evaporation and direct lithium extraction to speed output and reduce water use.

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 offtake agreements, minority equity interests and project financing.

In connection with the new JV, Ganfeng has agreed to provide Lithium Argentina with a $130 million, six-year debt facility bearing interest at SOFR plus 2.5%. The Debt Facility enhances Lithium Argentina’s financial flexibility, providing capacity to refinance corporate debt and further strengthen the Company’s balance sheet.

As part of the debt facility, Lithium Argentina has agreed to allocate up to 50% of its offtake from the initial development phase of PPG - capped at 6,000 tpa of LCE - to Ganfeng at market prices.

The New JV is expected to close by Q1 2026.