Lithium Argentina and Ganfeng Lithium Group have entered a framework settlement to create a three way partnership (JV) that can consolidate their lithium initiatives in Argentina.
The brand new JV, named PPG, will merge Ganfeng’s Pozuelos-Pastos Grandes venture with Lithium Argentina’s Pastos Grandes and Sal de la Puna initiatives.
Ganfeng will maintain a 67% stake within the enterprise, with Lithium Argentina proudly owning the remaining 33%.
The present growth plan goals to ascertain a manufacturing capability of as much as 150,000 tonnes each year (tpa) of lithium carbonate equal (LCE) in three phases.
The continued feasibility examine, anticipated to be accomplished by the tip of 2025, will probably be used to assist an utility beneath Argentina’s Incentive Regime for Giant Investments (RIGI), due for submission within the first half of 2026.
It’s going to assess the potential for each lithium carbonate and lithium chloride manufacturing, catering to the varied wants of the battery market. The proposed hybrid flowsheet combines direct lithium extraction and photo voltaic evaporation strategies to reinforce scalability and effectivity.
Each companions are exploring financing avenues together with offtake agreements, minority fairness pursuits and venture financing with potential prospects and strategic companions.
Lithium Argentina president and CEO Sam Pigott mentioned: “This transaction builds on our profitable partnership with Ganfeng at Cauchari-Olaroz, Argentina’s largest lithium operation.
“With this transformative step ahead, we’re rising our possession into the Pozuelos basin and aligning our pursuits round a considerably larger-scale operation. The brand new JV will present entry to superior applied sciences, elevated monetary flexibility and significant working synergies. It represents an necessary milestone in our technique to develop a diversified, scalable and sustainable international lithium provide chain whereas strengthening our stability sheet and creating lasting worth for our shareholders.”
Moreover, Ganfeng has dedicated to offering Lithium Argentina with a $130m (932.66 yuan) six-year debt facility at a SOFR (secured in a single day financing price) plus 2.5%. This facility will bolster Lithium Argentina’s monetary standing, permitting for company debt refinancing and stability sheet strengthening.
Underneath the phrases of the debt facility, Lithium Argentina will allocate as much as 50% of its offtake from PPG’s preliminary growth part to Ganfeng at market charges, capped at 6,000tpa of LCE.
The debt is prepayable with out penalties and secured by Lithium Argentina’s fairness in PPG, with provisions for subordination to new company debt financings.
