In addition to lithium carbonate, the regional development plan includes the production of lithium chloride to provide greater flexibility for its use in battery markets.
Lithium Argentina AG and Ganfeng Lithium Co. Ltd. have signed a letter of intent to advance a joint plan to develop the Pozuelos-Pastos Grandes basins, said Sam Pigott, president and CEO of Lithium Argentina, on Friday.
The agreement, collectively referred to as the "PPG," includes the Pozuelos-Pastos Grandes project—wholly owned by Ganfeng—the Pastos Grandes project—jointly owned (85% by Lithium Argentina and 15% by Ganfeng)—and Sal de la Puna (65% by Lithium Argentina and 35% by Ganfeng in Argentina).
"Following the commissioning of the Cauchari-Olaroz lithium operation last year, we are excited to leverage our expertise and strengthen our collaborative model to support these growth plans," Pigott said.
"Our ongoing efforts to finalize the regional development plan at PPG are encouraging and should present a compelling, low-cost solution to meet future battery market demand," he added.
The letter of intent provides a framework for Ganfeng and Lithium Argentina to consolidate the PPG project and finalize the regional development plan for the combined resources.
Development planning is progressing with a phased approach utilizing solar evaporation and direct lithium extraction (DLE), with combined capacity targeting up to 150,000 tonnes of lithium carbonate equivalent (LCE) per year.
In addition to lithium carbonate, the regional development plan includes the production of lithium chloride to provide greater flexibility for its use in battery markets. The project is expected to generate significant synergies, resulting in a larger, lower-cost operation than could be achieved independently.
A 5,000-tonne-per-year EDL demonstration plant is currently under construction for installation at the nearby Cauchari-Olaroz lithium operation, jointly operated by Lithium Argentina and Ganfeng, and is expected to be completed by the end of the year.
Ganfeng and Lithium Argentina are jointly exploring financing options for PPG, including collaboration with potential customers and strategic partners for minority ownership and acquisition stakes.
The formation of the new joint venture for PPG remains subject to several conditions, including the negotiation and completion of final documentation, the regional development plan, and the receipt of regulatory approvals, among others.
Lithium Argentina, in partnership with Ganfeng, operates the Cauchari-Olaroz lithium brine operation in Argentina and is developing additional lithium resources in the region. The company is currently listed on the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE).
